PENINSULA SECURITY SERVICES Vs. COMMR. OF C. EX.

JUDGEMENT

(1.) THIS application seeks waiver of pre -deposit of an amount of Rs. 1.25 lakhs imposed by the Commissioner of Central Excise on the appellants under Sections 76 & 77 of the Finance Act, 1994 (the Act). The impugned order is an Order -in -Revision passed Under Section 84 of the Act. The original authority had dropped the proceedings initiated against the appellants to recover an amount of Rs. 21,079/ - towards service tax on 'security services' rendered by the appellants during the period 2001 -04 to M/s. Swagath Industries Corporation finding that the appellants had paid the tax due before the show -cause notice dated 14 -3 -2005 was issued and that it had also paid -up the interest due before adjudication. Reviewing the order of the original authority the Commissioner of Central Excise found that the original authority had dropped the proceedings to penalize the appellants under Sections 76 & 77 of the Act without considering the liability of the appellants in terms of Sections 76 & 77 of the Act.

(2.) MOVING the application for waiver of pre -deposit the learned Counsel for the appellants submits that the show -cause notice pertain to non -payment of service tax of an amount of Rs. 21,079/ - by one of the clients of the appellants. By imposing penalty of Rs. 1.25 lakhs in the review proceedings, the Commissioner had traversed beyond the scope of the show -cause notice basic to the proceedings. The impugned amounts of penalty were not sustainable in law. I have also heard the learned Jt. CDR on the application. He concurs with the learned Counsel on the factual submissions made. After considering the submissions made by both sides I find that the impugned penalties imposed in revision proceedings are not backed by proposals in the show -cause notice basic to the proceedings. In the circumstances it is ordered that there shall be complete waiver of pre -deposit of the penalties imposed and recovery thereof pending appeal.