Per AJAYAN T.V.

M/s. Poompuhar Shipping Corporation Limited, the appellant herein, has challenged the Order in Appeal No.147/2016 (STA-II) dated 30-08-2016 (the impugned order) whereby the Appellate Authority upheld the Order in Original No.156/2015-16–ST–II dated 28-3-2016 passed by the Adjudicating Authority confirming the demand of service tax of Rs..48,21,639/- along with applicable interest, appropriation of the amount of Rs.48,21,639/- paid and the penalty of Rs.4,82,000/- imposed under Section 76 of the Finance Act, 1994 (the Act). The Appellate Authority, however set aside the penalty of Rs.10,000/- imposed under Section 77 (1) of the Act.

2. The brief facts of the case are that the Appellant, a Government of Tamil Nadu Undertaking is a registered service provider of supply of tangible goods service. During scrutiny of records of the Appellant,