KHAN ESTATE AGENCY Vs. COMMISSIONER OF CEN. EXCISE

JUDGEMENT

(1.) IN this case, the Asstt. Commissioner imposed a penalty of Rs. 2500/ - on the assesses who were held liable to pay Service Tax under the category of Real Estate Agents under the provisions of Section 76 of the Finance Act, 1994 for delay of payment of Service Tax for the period October 1998 to June, 2003. The department was of the view that there was no justification for imposing such a low penalty as Section 76 provided for imposition of penalty of Rs. 100/ - per day in case of failure to pay tax for every day after due date. Hence, the Revenue applied in revision to the Commissioner of Central Excise who by the impugned Older revised and enhanced the penalty from Rs. 2500/ - to Rs. 53,034/ -. This order was upheld by the Tribunal vide Order No. A/2034/C.IV/SMB/WZB/2006 dated 20.11.06. The assessees carried the matter further before the Hon'ble Bombay High Court which by its order dated 28.6.2007 in W.P. No. 3051 of 2007 set aside the Tribunal's order and remanded the case for fresh decision.

(2.) I have heard the ld. SDR and perused the records as none appears for the appellants in spite of notice.

(3.) FROM the table set out in the adjudication order, it is clear that the appellants did not pay Service Tax and did not file ST 3 returns on due date. The delay in payment of Service Tax ranges from 3 months of 58 months. The Larger Bench of the Tribunal has interpreted Section 76 of the Finance Act 1994 to mean that the penalty of Rs. 100/ - per day can be imposed in case of failure to pay tax for every day after the due date, in the case of ETA Engineering Ltd. v. CCE, Chennai . The enhanced penalty does not exceed Rs. 100/ - for every day after the due date, as seen from the fact that the delay in payment of Service Tax in this case ranges from 3 months to 58 months.