AMIRSH ENTERPRISES Vs. COMMISSIONER OF CENTRAL EXCISE, RAJKOT

JUDGEMENT

(1.) THE prayer in the application is to dispense with the condition of pre -deposit of penalty of Rs. 71,307/ -, which stands imposed on the appellant in terms of the provisions of Section 76 of Finance Act, 1994, on the ground of non payment of tax for four quarters endings i.e. December 2006, March 2006, June 2007 and September 2007.

(2.) LEARNED Chartered Accountant appearing for the appellants submitted that the appellants were working in a remote village area as Manpower Recruiting Agency. The tax could be paid as there is no bank in that area authorized to collect the service tax. As such, he submits that it should be construed as a reasonable cause in terms of the provisions of Section 80 of the Act, so as to set aside the entire penalty upon them. He also brings to the notice of the Bench that the entire service tax along with interest was paid subsequently before the issue of show cause notice.

(3.) COUNTERING the above arguments learned SDR submits that the appellant is a registered service tax assessee under the category of Manpower Recruiting Agency. He submits that the appellant having not paid service tax for four quarters is indicative of mala fide, in which case, the benefit of Section 80 can not be extended to them. Inasmuch as, Section 76 provides for mandatory penalty of Rs. 200/ - per day, the appellants be directed to deposit the entire quantum of penalty.