BSNL Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE present appeal which has been filed by Bharat Sanchar Nigam Ltd., Ballia under section 35G of the Central Excise Act, 1944 arises from an order dated January 21, 2014 of the Customs, Excise and Service Tax Appellate Tribunal, New Delhi. The Tribunal dismissed the appeal as the appellant failed to comply with the interim directions issued by the Tribunal earlier on September 17, 2013 requiring the appellant to deposit Rs. 1,14,77,883 together with corresponding interest under section 75 of the Finance Act, 1994. Though, a number of substantial questions of law have been framed, the following question would covers the controversy:

(2.) THE appellant is registered under section 69 of the Finance Act, 1994 with the Excise Department for providing telephone service. A demand -cum -show -cause notice dated October 10, 2007 was issued by the Commissioner, Central Excise, Allahabad. It was stated that the assessee had made a short -collection/payment of service tax in the amount of Rs. 1,14,77,883 during the period January, 2002 to December, 2006. This amount was, therefore, liable to be recovered from the assessee along with interest as per the provisions of section 73 read with section 75 of the Act and the appellant was also liable to pay penalty under section 78 of the Act. The appellant filed a reply dated December 7, 2007 denying wilful suppression of facts but accepted that ST -3 returns had not been submitted. The adjudicating officer passed the following order on February 14, 2008:

(3.) I impose a penalty of Rs. 1,14,77,883 (rupee one crore fourteen lakhs seventy seven thousand eight hundred eighty three only) on the said party under section 78 of the Act."