COMMISSIONER, CENTRAL EXCISE & CUSTOMS Vs. CAPT K P DINAKARAN, MANAGING DIRECTOR, FORCE SEVEN SECURITY & INVESTIGATION (P) LTD

JUDGEMENT

(1.) This appeal is by the revenue. We have heard the learned senior standing counsel for the Central Excise & Customs and the learned counsel for the respondent.

(2.) The respondent, a service provider had a confirmed assessment against him. He left it without any appeal. A penalty was also imposed under Section 76 and also under Section 78 of the Finance Act, 1994. Though the respondent did not file any appeal, Assistant Commissioner issued a notice proposing rectification of the earlier order for enhancement of the penalty imposed equal to the tax levied under Section 78 of the Finance Act, 1944. The decision of the Commissioner (Appeals) affirming such enhancement of penalty through the process of rectification has been interfered with by the CESTAT holding that in the guise of rectification of mistake, the entire complexion of the order cannot be altered under Section 74 of the Finance Act. The revisional power of the Commissioner under Section 84 of the Finance Act was not exercised either. Having considered the reasons extended by the CESTAT to interfere with the imposition of equal penalty and interest, we do not find our way to hold that the interference by the Tribunal as regards penalty is not justifiable. We do not see any ground to interfere in this appeal.