BATALA CITI CABLE PVT. LTD. Vs. CCE

JUDGEMENT

(1.) A very short issue is involved in the present appeal. The Assistant Commissioner vide his impugned order confirmed Service Tax on the appellants as "Advertising Agency" along with confirmation of interest and imposed penalty of Rs. 1000/ - in terms of Section 80 of the Finance Act. The said order was reviewed by Commissioner, who enhanced the penalty equivalent to duty amount and also imposed penalty under various other sections of the Act. The said order is impugned before me.

(2.) IT is seen that the period involved is 6.8.98 to 30.6.02. The appellant deposited the Service Tax in the month of June/July, 2004. The adjudicating authority has taken note of the fact that since there was confusion in the field, the appellant's bona fides cannot be doubted. I, in any case, found that in terms of Extraordinary Taxpayer Friendly Scheme issued by the board, if disputed Service Tax is deposited before 30.11.04, the same will not attract any penal action. The said scheme has been taken note of by the Tribunal in number of cases and it has been held that the enhanced penalties, on review, when the tax, along with interest stands deposited, are not sustainable. Inasmuch as in the present case, the entire tax stands deposited before 30.11.04 along with interest, I do not find any justification for enhancement of penalties, as done by the Commissioner. The impugned order is accordingly set aside and the order of Assistant Commissioner is restored. The appeal is allowed in the above terms. (Dictated & pronounced in open Court)