MALAYSIAN AIRLINES Vs. UNION OF INDIA

JUDGEMENT

(1.) All these petitions filed by the petitioners under Article 226 of the Constitution of India are challenging imposition of penalty under section 38(3) of the Finance Act, 1979 ("Finance Act" or "Act" for short) for delay in payment of Foreign Travel Tax ("FTT" for short) to the Government. The facts involved in all these petitions are more or less common and issues involved are identical. Hence all these petitions were heard together and are being disposed of by this common judgment.

(2.) The petitioner in this petition is a Airline Company engaged in the business of carrying passengers between various locations in India and abroad. The petitioner in the course of its business collected FTT from passengers going abroad in accordance with the Finance Act and Foreign Travel Tax Rules, 1979 framed thereunder ("FTT Rules" for short). The petitioner for the months of April, August, September and December, 2001 failed to pay the FTT within the stipulated period. In view of its failure, four separate showcause notices were issued to the petitioner. The adjudicating authority vide its order dated 29th May, 2002 imposed penalty of Rs.4,19,700/on the petitioner for late payment of FTT for the months of April, August and September, 2001, whereas vide order dated 18th July, 2002 imposed penalty for the month of December, 2001.

(3.) Aggrieved by the aforesaid order, petitioner filed two separate appeals before the Commissioner (Appeals). Pursuant to the interim order dated 16th September, 2002, passed by the Commissioner (Appeals), the petitioner furnished bank guarantees for the amounts involved. The Commissioner (Appeals), vide his order dated 15th January, 2003, dismissed these appeals of the petitioner and upheld the orderinoriginal.