COMMISSIONER OF CENTRAL EXCISE Vs. BAJAJ TRAVELS LIMITED

JUDGEMENT

(1.) This appeal has been preferred by the revenue under Section 35G of the Cental Excise Act, 1944 (for short, "the Act") against the order of the Customs, Central Excise & Service Tax Appellate Tribunal, New Delhi dated 19.6.2009 (Annexure A-3) proposing to raise following substantial question of law:

(2.) The Assessee is a travel agent and its service is 'taxable service' exigible to service tax under the provisions of the Finance Act, 1994. On 5.9.2005, a search was conducted at the premises of the Assessee, resulting in issuance of show cause notices dated 20.10.2005 and 31.1.2006 alleging violation of Rule 6(7) of the Service Tax Rules, 1994 on account of suppression of 'basic fare'. The adjudicating authority passed order in original dated 9.6.2006, creating demand of service tax and also imposing penalty. However, it was observed that the payment already made be appropriated. On appeal, the Tribunal held that the entire amount of service tax alongwith interest had already been paid by the Assessee before the passing of the adjudication order, in which case, first proviso to Section 78 was attracted and quantum of penalty was required to be limited to 25% of the service tax involved and not 100%. Accordingly, levy of penalty beyond 25% was set aside.

(3.) We have heard learned Counsel for the Appellant.