CCE Vs. ER ULAVAN URA DEPOT

JUDGEMENT

(1.) THE impugned order affirmed demand of service tax of Rs. 23,414/ - from the respondents found to have been due towards service tax under the head 'Clearing & Forwarding Agents' during the period May 2001 to March 2003. The respondents paid an amount of Rs. 7,631/ - along with applicable interest before proceedings were initiated by the Department to recover the short -paid tax. The balance amount also had been paid subsequently along with the interest due. The original authority imposed penalties on the appellants Under Section 75A, 76 and 77 of the Finance Act, 1994 (the Act). Penalties imposed were Rs. 500/ - Under Section 75A, Rs. 1,000/ - Under Section 77 and penalty at the rate of Rs. 100/ - per day for the delay in payment of the arrears Under Section 76 of the Act. In the impugned order the Commissioner (Appeals) modified the penalty imposed Under Section 76 of the Act to Rs. 2,000/ -. In so reducing the penalty imposed by the original authority the first appellate authority had taken into account the confusion that existed during the material period, the part payment of the dues made by the respondents before issue of the show -cause notice and also the ratio of a decision of the Tribunal in CCE, Bangalore v. S.B. Gopalakrishna reported in (Tri. - Bang.). In challenging the reduction of penalty, the Revenue relied on a judgment of the Hon'ble High Court of Rajasthan in Union of India v. Aakar Advertising . In the above judgment their lordships held as follows:

(2.) ON 27.1.1999 the impugned order was upheld and the appeal filed by the Revenue was dismissed. However, it appeared that in terms of the judgment of the High Court of Rajasthan, the Commissioner (Appeals) had reduced the penalty contrary to the statutory provisions contained in Section 76 of the Act. Once penalty was found to be imposable Under Section 76, the same could be only Rs. 100/ - per day or Rs. 200/ - per day for the duration of the delay in paying the arrears. Accordingly, the case was recalled.

(3.) THE learned JDR submits that as per the Dispute Resolution Scheme, 2008 announced by the Ministry of Finance any pending appeal shall stand withdrawn once the arrears of service tax, penalty, interest etc are paid in terms of the scheme and a certificate issued by the designated authority in terms of Sub -section (2) of Section 96 of the Finance Act, 2008. I find that the respondents have not claimed any relief of paying lower amount of tax or penalties or interest as per the scheme. They have discharged all the adjudged dues. As per the certificate dated 7.10.2008 issued by the designated authority no dues survive to be paid by the respondents. In the circumstances the appeal is dismissed as withdrawn under Dispute Resolution Scheme.