RAMANASEKAR STEELS LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE appellants have paid the amount of service tax demanded for the period April 2002 to March 2003. The lower authorities have ordered levy of interest on this amount and have imposed penalties of Rs. 200/ - per day and Rs. 1,000/ - under Sections 76 and 77 of the Finance Act, 1994. For the present purpose, ld. Counsel pleads financial hardships. It is submitted that proceedings are going on before the BIFR for rehabilitation of the unit. Ld. SDR reiterates the findings of the lower appellate authority.

(2.) I have considered the submissions made by both sides. I find that there is no final quantification of the penalty imposed under Section 76. The only amount quantified by the original authority and sustained by the Commissioner (Appeals) is an amount of interest of Rs. 1,68,627/ -. As the tax liability is not in dispute and the provision providing for interest on tax is mandatory, the appellants do not seem to have a prima facie case against the demand of interest quantified by the lower authorities. Accordingly, I decline stay of recovery of the quantified interest amount. However, there will be waiver of pre -deposit and stay of recovery in respect of the penalties.