A.K. Srivastava, Technical Member. - These appeals have been filed by M/s. Magnum International and M/s. Magnum Environment Managements Pvt. Ltd. against the Orders-in-Appeal Nos. 10-ST/BPL/2006 and 11-ST/BPL/2006, dated 18-1-2006 passed by the Commissioner of Customs & Central Excise (Appeals), Bhopal.

2. The Assistant Commissioner vide Order-in-Original No. 35/AC-1/ADJ/ST/SA/05, dated 20-4-2005 in the case of M/s. Magnum Environment Managements Pvt. Ltd. has ordered as under:-

(i)The amount of service tax for the period 16-10-1998 to March, 2002 is assessed as Rs. 3,87,672 under section 73 of Finance Act, 1994 on gross amount of Rs. 77,53,441 collected by the party M/s. Magnum Security Pvt. Ltd. However, as the party has already paid an amount of Rs. 48,184 as service tax, the same is adjusted and an amount of Rs. 3,39,488 is determined as service tax short paid by the party on the escaped value of taxable services, which is recoverable from them.

(ii)Interest at the appropriate rate is also recoverable under section 75 of Finance Act, 1994 for the period of default.

(iii)A penalty of Rs. 1,66,600 is imposed under section 76 of Finance Act, 1994.

(iv)A penalty of Rs. 3,39,488 is