CCE Vs. TARGET POLYMERS PVT. LTD.

JUDGEMENT

(1.) THE department is in appeal against the reduction of penalty from Rs. 4,81,121/ - under Section 78 of the Finance Act, 1994 to Rs. 1,00,000/ - by the Commissioner (Appeals). In this case respondents were found to be engaged in providing services under category of business auxiliary service and they had failed to pay the service tax on the amount received. The Commissioner (Appeals) has reduced the penalty taking note of the fact that appellants discharged the tax liability with interest as soon as they came to know of the liability. Further, he has also found that appellants were acting as one of the agents of Reliance Industries Ltd. and also as distributor. Further, they were also acting as del credere agent when required by Reliance Industries Ltd. The del credere services provided by the appellants were considered to be relating to promotion or marketing or sale of goods and held to be classifiable as business auxiliary services.

(2.) NO one has appeared on behalf of the respondents. Shri Rajendra Nagar, learned SDR on behalf of the Revenue submits that penalty under Section 78 is mandatory and this was not a fit case for giving relief under the Provisions of Section 80 of the Finance Act, 1994. He also submits that the reliance of the Commissioner (Appeals) on the order of the Tribunal is also not correct.