PRASAD BIDAPPA Vs. COMMISSIONER OF SERVICE TAX, BANGALORE

JUDGEMENT

(1.) THE appellant is seeking waiver of pre -deposit of the penalty amounts. The Order -in -Original has not imposed penalty under Section 76 and 78 of the Finance Act. The Revenue aggrieved with the non -imposition of penalty under the said provisions had filed an appeal before the Commissioner. The Commissioner set aside the order of the Assistant Commissioner not imposing penalty under Section 76 and 78 of the Finance Act and he imposed penalty of Rs. 100/ - for every day during which failure to make payment under Section 76 of the Act and penalty of Rs. 4,50,000/ - under Section 78 of the Act. The appellants seek waiver of pre -deposit of the amounts. The learned Chartered Accountant submits that a large number of appeals on the very issue have been listed for hearing today. He submits that there are contradictory judgments on the issue and hence the matter has been referred to the Larger Bench of the Tribunal. He prays for waiver of pre -deposit of the penalty amounts.

(2.) THE learned Jt. CDR submits that the Karnataka High Court in the case of Commissioner of Central Excise and STC, Bangalore v. First Flight Couriers Ltd. - 2007 (8) S.T.R. 225 (Kar.) has upheld the levy of penalty equivalent to the service tax. Therefore the appellant is required to pre -deposit the amounts. He also fairly concedes that a large number of appeals on the very issue have been listed for hearing today.

(3.) ON a careful consideration of the matter, we notice that there are contrary judgments on the very issue. Therefore the stay application is allowed by granting waiver of pre -deposit of the amount in the matter. There shall be no recovery of the amount till disposal of the appeal. This appeal is to be linked up with the similar appeals which have been adjourned to 21st February 2008.