RUNANUBHANDH MANGAL KARYALAYA Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal is directed against the order in Revision dated 29/09/2006 vide which the learned Commissioner has enhanced the penalty from Rs. 1,000/ - to Rs. 88,350/ -.

(2.) THE issue in brief is that the appellant was a service provider as Mandap Keeper and failed to discharge the service tax liability for the period January, 2000 to September, 2002. Subsequently the appellant discharged the service tax liability before the issuance of show cause notice. On these facts the adjudicating authority vide his order -in -original dated 26/10/2004 imposed only a penalty of Rs. 1,000/ - on the appellant under Section 76 of the Finance Act, 1994. The Commissioner of Central Excise, Nasik on revision found that the penalty imposable on the appellant would be equivalent amount of the service tax which has not been paid within the stipulated period. Hence he issued show cause notice under the provisions of Section 84 of the Finance Act, 1994 for enhancement of the penalty. After considering the arguments made by the appellant before him, the learned Commissioner held that the penalty of Rs. 1000/ - imposed under Section 76 is not correct and hence enhanced the penalty to Rs. 88,350/ - i.e. the amount equal to service tax which was not paid within the stipulated time.

(3.) THE learned advocate appearing on behalf of the appellant submits that they are not challenging the service tax liability but are only challenging the penalty which has been enhanced in the reversionary order. It is his submission that the amount of service tax along with interest has already been paid by the appellant before the issuance of the show cause notice and hence the ratio decision of Hon'ble High Court of Bombay in the case of CCE v. Gaurav Mercantiles Limited as will be applicable.