that as per Notification No.25/2007 ST dated 22.05.2007, Service Tax is exempted in respect of equipment services provided to those who are engaged in construction of ports, or in connection with exports, the appellant has not paid service tax for such services rendered to some of its customers. While so, the Additional Commissioner, Customs & Central Excise issued a Show Cause Notice to the appellant on 12.03.2012 stating that Service Tax is exempted only for service providers engaged in construction of ports and such exemption is not applicable in the case of appellant and hence sought explanation from the appellant to show cause as to why an amount of Rs.12,29,809/- should not be demanded towards Service Tax under “Supply of Tangible Goods Service” along with applicable interest and penalty under the provisions of the Finance Act, 1994 (for short, ‘the Act’). The appellant submitted reply to the show cause notice. The Additional Commissioner, after affording an opportunity of hearing, by way of Order-in-Original dated 23.08.2012 confirmed the demand of Service Tax of Rs.12,29,809/- along with applicable interest and penalty of an equal amount under Section 78 of the Act along with penalty of Rs.5,000/- under Section 77 of the Act. Aggrieved, the appellant filed an appeal before the Commissioner (Appeals). The Commissioner (Appeals), vide Order-in-Appeal dated 21.02.2014, modified the Order-in-Original to the extent that the Service Tax was reduced to Rs.11,14,968/- along with interest liability on the modified figure. The penalty of equal amount levied under Section 78 of the Act was set aside, while upholding the
