1. This appeal by the assessee is directed against the order-in-appeal upholding the order-in-original of the Assistant Commissioner with modification. The Assistant Commissioner had confirmed demand of service tax of Rs. 2,36,114 with interest thereon under section 75 and imposed penalty at the rate of Rs. 200 every day for default of payment of service tax under section 76 (of Finance Act, 1994) directing that the penalty shall not exceed the amount of service tax due from the appellant. Penalty of Rs. 1,000 under section 77 for non-filing of ST-3 return was also imposed. By the order-in-appeal, the Commissioner (Appeals) reduced the demand by Rs. 11,244 directing that the same may be adjusted against interest and penalty. The penalty under section 76 was also reduced to Rs. 100 instead of Rs. 200 per day. With these modifications, order of the Assistant Commissioner was upheld.

2. It may be stated here that the duty demand was earlier adjudicated by the Deputy Commissioner vide order dated 24-9-2002 holding the appellant liable to pay service tax of Rs. 2,36,114 under section 68 and penalty of Rs. 4,000 under section 77, besides interest in the manner detailed in the order.