COMMISSIONER OF CENTRAL EXCISE Vs. PKN BUS SERVICE

JUDGEMENT

(1.) THE Revenue is aggrieved by the order of the Commissioner, Central Excise (Appeals), reducing the penalties imposed on the assessees under the provisions of Sections 76 and 78 of the Finance Act, 1994.

(2.) AS none appears for the assessees in spite of notice, heard the Ld. DR and perused the records. The Commissioner (A) has given a clear finding based on the statutory provisions viz., the first proviso to Section 78 to reduce the penalty on the ground that the assessees paid the service tax together with interest even prior to the issue of Show Cause Notice, Section 78 states that if the service tax is paid together with interest within 30 days of the receipt of the Order -in -Original, the penalty is to be reduced to 25%. Therefore, there is no ground to interfere with the finding on reduction of penalty under Section 78. As regards Section 76, there is also no merit in the revenue's appeal for enhancement of penalty as the provisions of Section 76 & 78 are mutually exclusive, however, the penalty reduced cannot be set aside in the absence of an appeal by the assessees. I, therefore, upheld the reduction in penalties and dismiss the Revenue's appeal.