CCE Vs. ESS ESS KAY ENGG. CO. LTD.

JUDGEMENT

(1.) THE Revenue filed this appeal against the impugned order of the Commissioner (Appeals) whereby imposition of penalty under Section 76 and 77 is set aside and period of payment of interest is modified.

(2.) LD . DR on behalf of the Revenue submits that Notification No. 4/03 -ST dt. 14.5.03 directed to pay the tax on Goods Transport Operator for the period 16.11.97 to 2.6.98 and shall furnish a return within a period of six months from 14.5.03 failing which the interest and penal consequences as provided in the Act shall follow. He submits that in this case, the respondent paid tax on 29.10.04. So, the adjudicating authority rightly demanded interest from the date of notification to actual date of payment and also imposed penalty as provided in the notification. He submits that notification clearly stipulates penal consequences and therefore, Section 80 of Finance Act, 1994 cannot be invoked.

(3.) LD . Advocate on behalf of the respondent submits that the tax liability is in dispute and the Tribunal referred the matter to the Larger Bench in the case of Agauta Sugar and Chemicals and Ors. v. CCE, Noida reported in 2007(82) RLT.1015 (CESTAT -Del.). He submits that in this case the respondent paid the tax inspite of the dispute of the tax liability. Therefore, penal provisions cannot be invoked. The Commissioner (Appeals) rightly modified the payment of interest and set aside the penalty.