GLOBAL INFORMATION TECHNOLOGIES Vs. C.C.E., HYDERABAD

JUDGEMENT

(1.) THIS application filed by the appellant seeks waiver and stay in respect of the adjudged dues. After perusing the records and hearing both sides, we have found a valid reason for final disposal of this case. Accordingly, after dispensing with pre -deposit, we take up the appeal.

(2.) IN a show cause notice dated 27 -12 -2010, the department demanded an amount of Rs. 9,47,988/ - towards service tax and education cesses for the period from October 2006 to September 2010 under the proviso to Section 73(1) of the Finance Act, 1994, and proposed to appropriate equal amount already paid by them towards such demand. The show cause notice also proposed to appropriate a payment of Rs. 1,09,241/ - towards demand of interest on service tax and education cesses. It also proposed penalties on the party under Sections 77 and 78 of the Act. In reply to the show cause notice, the Managing Partner of the firm stated certain circumstances which were claimed to have caused delay in payment of service tax. He also requested for dropping the Section 78 penalty on the ground that the entire service tax and interest thereon had been paid before the issue of show cause notice. The Managing Partner also invoked Section 80 of the Finance Act, 1994 to get over penal liability. The adjudicating authority, in a detailed order, confirmed the demands against the assessee and appropriated their payments towards such demands. It also imposed a penalty of Rs. 9,47,988/ - on the assessee under Section 78 of the Act and also enabled the party to pay only 25% towards penalty if paid within 30 days from the date of communication of his order. The assessee did not exercise the option given by the adjudicating authority. They preferred an appeal to the Commissioner (Appeals) and the latter upheld the order passed by the lower authority. Hence the assessees appeal before us.

(3.) AFTER hearing both sides and considering their submissions, we have noted the following facts : -