CHIRSPAL SHIPPING Vs. COMMR. OF C. EX.

JUDGEMENT

(1.) THE appeal and Miscellaneous application arise from Order -in -Appeal No. AT/325/M -III/2004, dated 22 -6 -2005 passed by the Commissioner of Central Excise (Appeals), Mumbai. The appellant, M/s. Chrispal Shipping Co. Pvt. Ltd., Mumbai, are engaged in providing taxable service of Steamer Agent services. During the period September, 97 to March, 2001 they collected an extra amount of Rs. 26,66,553/ - from their clients towards the services rendered but did not pay service tax on the said amount. During investigation, statement of Shri Christopher James, the Managing Director of the appellant firm was recorded on 9 -1 -2002 wherein, he inter alia, admitted that his firm had recovered additional amounts from their clients which were not declared to the department while filing the service tax returns and furnished bill -wise details of the extra amounts collected. A show cause notice dated 6 -3 -2002 was issued to the appellant proposing to demand service tax of Rs. 1,33,326.50 on the extra amount collected along with interest thereon and also proposing to impose penalties under the relevant provisions of Finance Act, 1994. The notice was adjudicated vide order dated 14 -9 -2004 wherein the service tax demand was confirmed along with interest thereon and a penalty of Rs. 2.5 lakhs was imposed under Section 78 of the said Finance Act. The appellant preferred an appeal before the lower appellate authority who dismissed the appeal. Hence the appellant is before us.

(2.) THE ld. Consultant for the appellant made the following submissions: -

(3.) WE have carefully considered the submissions made by both the sides.