COMMISSIONER OF CENTRAL EXCISE Vs. SUTHAN PROMOTERS

JUDGEMENT

(1.) This appeal is directed against the order of the CESTAT dated 12.11.2001 passed in Final Order No.1744 of 2009.

(2.) The issue relates to the levy of penalty. The substantial question of law that raised in this appeal reads as under:

(3.) The respondent-assessee is involved in the business of construction of residential complex. It constructed 12 dwelling units and its transactions were subject to levy of service tax with effect from 16.06.2005 under the heading "construction of residential complex". On being noticed that the respondent failed to file the necessary returns, the respondent was proceeded against by way of necessary notice and statements were recorded on 02.03.2006. The receipt of Rs.1,11,79,757/- for the period from 16.06.2005 to 31.12.2005 from the buyers of flats for providing such service tax was noted. The liability was determined by the assessing authority by assessing the tax amount at a sum of Rs.3,68,932/- along with cess. Thereafter, the respondent paid a sum of Rs.2,33,098/- towards service tax, cess and interest. After adjusting the said payment, for the balance amount, a show cause notice was issued for imposition of penalty by the Commissioner by notice dated 09.10.2007. Thereafter, the Commissioner in exercise of his powers of suo motu revision under Section 84 of the Act, passed orders on 13.12.2007 imposing a penalty of Rs.200/- per day starting with the first day after the due date till the actual payment of service tax. A sum of Rs.1,000/- was imposed by way of penalty under Section 77 of the Finance Act, 1994 and a sum of Rs.3,72,945/- on the notice issued under Section 78 of the Finance Act, 1944.