JAGDISH TRAVELS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal is directed against the order dated 26 -2 -2004 made by the Commissioner (Appeals) thereby dismissing the appeal by upholding the order of the adjudicating authority imposing penalty on the appellants under Section 77 of the Finance Act, 1994.

(2.) EARLIER the Tribunal, by its order dated 28 -3 -2001, while setting aside the Appellate Commissioner's order dated 3 -11 -2000 had remanded the matter for fresh decision in accordance with the law. Originally the appeal was filed against the order -in -original dated 22 -2 -1999 passed by the Assistant Commissioner, imposing penalty of Rs. 27,500/ - on the appellant under Section 77 of the Act on late submission of the ST 3 return for the quarters ending September, 1997, December, 1997, March, 1998 and June, 1998. That penalty was set aside by the Commissioner (Appeals) in the earlier order in appeal since no notice was issued in terms of Section 70(2) asking them to file their returns. That order was challenged by the revenue and the Tribunal remanded the matter for fresh decision pursuant to which the impugned order has been made.

(3.) THE Commissioner considering the contentions of the appellants narrated in paragraph 3 of the order that issue of notice under Section 70(2) was not a pre -requisite for imposition of penalty under Section 77 and the liability to pay penalty arose on failure to furnish returns in due time, has found that there was abnormal and repeated delay in filing the return and tax on tour operators became operational from 1 -9 -1997 and the appellants were registered on 13 -11 -1997. It was found that appellants had misled and shown utter disregard for law and no cogent explanation was given for abnormal delay. Therefore, there was no case made out for invoking the provisions of Section 80 of the said Act.