SABHARWAL SECURITY CONSULTANTS Vs. COMMR. OF C. EX.

JUDGEMENT

(1.) THIS stay application is directed against the confirmation of amount of penalty of Rs. 1,71,710/ - (Rupees One Lakh Seventy One Thousand Seven Hundred and Ten only) under Section 76 of the Finance Act, 1994.

(2.) CONSIDERED the submissions made by both sides and perused records. I find from the records that the appellant had got himself registered as a security service provider in 1999. Till October, 2001, the appellants discharged their tax liability as provided under the law. From October, 2001 to March, 2003 the appellants defaulted in paying the service tax by 552, 368 and 187 days. To my mind, the appellants were aware of the provisions of the Finance Act but still chose not to deposit the service tax amount within due date. The reasons given are that the proprietor was not well and was suffering from Hypertension and Diabetes. To my mind, this cannot be a reason for non -deposit of the service tax. The appellants have not made out a prima facie case for complete waiver of penalty imposed on them. Appellants are directed to deposit an amount of Rs. 50,000/ - (Rs. Fifty Thousand only) within 6 (six) weeks from today and report compliance on 7 -9 -2006. Subject to such compliance being reported, the pre -deposit of balance amount of duty is waived and recovery thereof stayed till the disposal of the appeal, (Dictated and pronounced in the open court)