CCE Vs. PRADEEP ENTERPRISES

JUDGEMENT

(1.) HEARD the ld. DR on behalf of the Revenue. None appears on behalf of the Revenue.

(2.) THE relevant facts of the case, in brief, are that the respondents were providing maintenance and repair service to M/s. Goodlass Nerolac Paints Ltd. The respondent is a proprietorship firm. Shri Pradeep Kumar, Proprietor of the respondent firm appeared before the Central Excise Officers in response to summon along with Bill Books and Bank Statements and accepted the tax liability, which they deposited along with interest, on 31.07.2006 and 24.04.2007. A show cause notice dated 7.5.2007 was issued to appropriate the amount as deposited by them and to impose penalties. The Original Authority confirmed the demand of tax of Rs. 2,12,907/ - and appropriated the same as deposited by them. He also appropriated the demand of tax of Rs. 41,553/ -. He further imposed penalty of equal amount on each under Section 76 and 78 of the Finance Act, 1994 and a penalty of Rs. 1,000/ - under Rule 77 of the Act. The Commissioner (Appeals) set aside the penalties. Hence, Revenue filed this appeal.

(3.) AFTER hearing the ld. DR and on perusal of the records, I find that Section 80 of the Finance Act, 1994 provides that, "notwithstanding anything contained in the provisions of Section 76, Section 77 or Section 78, no penalty shall be imposable on the assessee for any failure referred to in the said provisions, if the assessee proves that there was reasonable cause for the said failure." In the present case, the respondent was providing services to M/s. Goodlass Nerolac Paints Ltd. and raised the bills from time to time. They have maintained proper records of the transactions. It appears that M/s. Goodlass Nerolac Paints Ltd. had not guided the respondent's Proprietorship firm. It further appears that the Proprietor of the respondent firm in response to the summons immediately appeared and disclosed the entire transactions as recorded in the Bill Book, Bank Statement, etc. They have also paid the tax with interest.