SHAYNA CONSTRUCTION Vs. COMMISSIONER OF CENTRAL EXCISE, RAJKOT

JUDGEMENT

(1.) THE delay in filing the present appeal is of eighteen days, which according to the appellant has occurred on account of his visit to remote village of Tamil Nadu to see his ailing mother. In view of the above, I condone the delay and allow the COD application.

(2.) I proceed to decide the stay petition, which is for dispensation of pre -deposit of penalty amount of Rs. 69,596/ -. The said penalty stands imposed upon the appellant under the provisions of Section 76 of Finance Act, 1994 on the ground of late filing of return and delay in payment of service tax. The appellant is registered under the category of construction services. The return for the period April 2006 to September 2006 was filed late by 187 days. Accordingly, proceedings were initiated against them, which resulted in imposition of penalty under Section 76 as also imposition of penalty of Rs. 1,000/ - under Section 77. The appellants have pleaded that the delay in filing return was on account of illness of the mother of the appellants proprietor had his native place and as he has gone to visit her, return could not be filed in time. He had also pleaded that the appellants were not financially sound to make the payment of service tax and as such delay had occurred.

(3.) PRIMA facie, I find that the explanation given by the appellant is not sufficient to invoke the provisions of Section 80, as rightly held by the authorities below. Late filing of return and late payment of tax, prima facie attracts penalty under Sections 76 and 77. As such I direct the applicant to deposit 50% of the penalty within a period of six weeks from the date of receipt of the order and report compliance on 31 -7 -09, when appeal itself would be taken up for final disposal, after ascertaining compliance.