BHARAT SANCHAR NIGAM LIMITED Vs. CCE

JUDGEMENT

(1.) THIS appeal is directed against order in appeal dated 18/08/03 which upheld the order of interest and imposing penalty on the appellant.

(2.) THE relevant fact that arises for consideration are the appellant is a Secondary Switching Area (SSA) of BSNL, the Government of India undertaking unit till 01/10/2000 subsequent to 01/10/2000 is an autonomous body. The appellants were required to deposit the service tax collected by them for the period October 2000 to March, 2001 with the authorities. The appellant relying upon the circular transferred the amount by book transfer to department of Telecommunication (DoT). Subsequently, the appellants on being pointed out, deposited the amount of service tax on 30 March, 2001, 26/04/2001 and 21/05/2001. Show cause notice was issued to the appellant for imposing penalty and recovery of interest, as per the provisions of the Finance Act, 1994. The adjudicating authority imposed penalty under Section 76 of the Finance Act, 1994 and also sought to recover the interest from the appellant under Section 75. The Commissioner (Appeal) on an appeal reduced the penalty imposed, but upheld the order of collection of interest from the appellant. Hence this appeal.

(3.) THE learned DR on the other hand submits that the Commissioner (Appeal) has already reduced the penalty from Rs. 66,000/ - (Rupees Sixty Six Thousand only) to Rs. 10,000/ - (Rupees Ten Thousand only) that in an indulgence given to the appellant. It is his submission that the provisions of Section 75 mandates to collect interest on the amount outstanding from the appellant.