PROFESSIONAL COURIER Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) M /s Professional Courier, appellants, have filed this appeal challenging the order of the Commissioner (Appeals) dated 15.03.2004. Upholding the order passed by Deputy Commissioner of Central Excise vide his Order -in -Original No. 61/2000 dated 16.06.2000. In the original order, the Deputy Commissioner had imposed the following penalties:

(2.) THE ld. Counsel for the appellant states that the appellants have deposited the entire amount of tax - even along with interest well before the issue of show -cause notice. He argues that at the relevant time, there was much confusion about the procedure of service tax law as it was a nascent levy. The appellant was under the impression that they were supposed to file a return only after collecting the amounts from their customers and depositing the same to the Department. Hence there was a delay in furnishing the appeal on their part without any malafide Ld. Counsel also relies upon this Tribunal's ratio in such circumstances, for instance, as apparent in the case of Commissioner of Central Excise, Bangalore -III v. impress Ad -Aids & Displays 2004 (173) E.L.T. 137 (Tri. -Bang.), which held that exorbitant penalty was not imposable. It was also held that the Commissioner was justified in setting aside such exorbitant penalty in the light of the law laid down by the Tribunal in the case of Smitha Shetty v. Commissioner of Central Excise . The ld. Counsel also relies upon the following decisions of the Tribunal:

(3.) I have examined the case records and heard both sides. I notice that the appellants have deposited not only tax but also interest due thereon in the month of Nov.'99 itself i.e., much he show -cause notice dated 21 -3 -2000 was received by them. The benign provisions such as Section 80, need to be taken into consideration in order to accommodate the genuine failure on the part of the assessees to render human face to the tax collection machinery. Having regard to the facts and circumstances of the case, recalling the travails which are natural in any nascent tax law, I hereby reduce the total quantum of penalty levied by the D.C.C.Ex. under various Sections to sum of Rs. 10,000/ - (Rupees Ten Thousands only).