COMMISSIONER OF CENTRAL EXCISE Vs. CLASSIC CABLE NETWORK

JUDGEMENT

(1.) M /s. Classic Cable Network are engaged in providing cable network services. On the ground that the assessee had short -paid service tax to the tune of Rs. 44,473 during the period October 2002 to March 2005 by suppressing the amount of collection from their customers, service tax with interest has been demanded. Further in his Order -in -Original the Assistant Commissioner imposed penalty of Rs. 44,473 under Section 76 and Section 78 of the Finance Act, 1994. The Commissioner in exercise of the powers under Section 84 of the Finance Act, 1994, issued a show -cause notice proposing revision of the Order -in -Original and passed the impugned order whereby he imposed a penalty of Rs. 44,473 under Section 76 of the Finance Act, 1994. Revenue is in appeal against this order on the ground that the revisionary authority even though observed that the unit was liable to pay penalty under Section 76 of the Finance Act, 1994 in addition to the penalty under Section 78 of the Act, yet imposed penalty amounting to Rs. 44,473 under Section 76 of the Act only and failed to impose penalty under Section 78 of the Finance Act, 1994.

(2.) NO one has appeared on behalf of respondents. No one had appeared on the earlier occasions when the matter was listed namely on 23 -10 -2009, 3 -12 -2009 and 4 -1 -2010. On none of the occasions respondents sought adjournment or appeared. Learned DR submits that the Commissioner omitted to impose penalty under Section 78 of the Finance Act, 1994 and relies upon the decision of the Hon'ble Kerala High Court in the case of Asstt. CCE v. Krishna Podwal, (2006) 3 STT 96 in support of his contention that penalty under Section 76 and Section 77 are imposable in addition to penalty under Section 78 of the Finance Act, 1994. I find that in the Order -in -Original, the adjudicating authority had imposed penalty of Rs. 44,473 under both the sections namely Section 76 of the Finance Act, 1994 and Section 78 of the Finance Act, 1994. In the order in revision, the Commissioner has categorically observed as under: