COMMISSIONER OF CENTRAL EXCISE Vs. AKASH KUMAR

JUDGEMENT

(1.) THE Revenue has preferred this appeal under Section 35(G) of the Central Excise Act, 1944 (for short - the Act) against the order Annexure P -2 dated 20 -6 -2007 passed by the Customs Excise & Service Tax Appellate Tribunal, New Delhi, proposing to raise following substantial questions:

(2.) THE assessee is assessable to service tax for the insurance and auxiliary services. On account of delay in payment of tax, show cause notice was issued to levy penalty. The Adjudicating Authority imposed penalty of Rs. 200/ - per day which was more than the amount of tax and thus beyond maximum penalty leviable. The Revisional Authority reduced the amount of penalty to Rs. 10,167/ - for delay of 129 days which was equal to 100% of the service tax.

(3.) IT is not disputed that under Section 76 of the Finance Act, 1994, penalty for delay in service tax cannot exceed the amount of service tax which the assessee is liable to pay. The said section is reproduced below: