COMMISSIONER OF CENTRAL EXCISE PUDUCHERRY COMMISSIONERATE Vs. CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL AND ORS.

JUDGEMENT

(1.) Aggrieved by the order of the Appellate Tribunal in dismissing the appeal filed by it, the Revenue is before this Court challenging the said order by filing the present appeal. This Court, vide order dated 30.04.09, while admitting the appeal, framed the following substantial questions of law for consideration:-

(2.) The 2nd respondent is a manufacturer and service provider of computer peripherals and parts and accessories for computers. A show cause notice was issued, which was agitated and a demand for service tax of Rs.3,19,863/= in addition to imposition of interest under Section 11AB and penalty under Section 11AC of the Act equal to the duty payable under the Central Excise Act and a further penalty of Rs.30,000/= under Rule 25 of the Central Excise Rules, 2002 was imposed.

(3.) Aggrieved against the said adjudication order, the assessee preferred appeal to the Commissioner (Appeals), who upheld the demand of duty, but set aside the demand of interest and penalty by following the judgments of the Supreme Court. Aggrieved against that portion of the order by which the interest and penalty was set aside, the department preferred appeal before the Tribunal. The Tribunal, on analysis of the case, confirmed the order passed by the Commissioner (Appeals), against which the Department has preferred the present appeal.