COMMISSIONER, CENTRAL EXCISE COMMISSIONERATE, LUDHIANA Vs. CITY CABLES

JUDGEMENT

(1.) The Revenue is in appeal under section 35G of the Central Excise Act, 1944 against the order dated 28.02.2011 (Annexure A-4) passed by the Customs Excise & Service Tax Appellate Tribunal, New Delhi (for short "the Tribunal") in ST/Appeal No. 761 /2007. The learned counsel for the Revenue has claimed the following substantial question of law, as arising from the order of the Tribunal:

(2.) The assessee preferred an appeal against the said order. The Commissioner (Appeals) set aside the order of imposing penalties. However, in Revenue's appeal, the learned Tribunal vide order dated 1.2.2011 gave an option to the assessee to deposit 25% of the penalty of the service tax demand in terms of second proviso to section 78 of the Act relying upon two judgments of this Court in CCE w. J.R. Fabrics, 2009 238 ELT 209 and CCE v. Bajaj Travels Ltd., 2011 30 STT 293 .

(3.) Learned counsel for the appellant has vehemently argued that the benefit of reduced penalty can be availed by the assessee, if he deposits the amount of penalty within 30 days of the order, but the Authorities under the Act are not competent to give option to the assessee to deposit such amount. The relevant provisions of the Act read as under: