COMMISSIONER OF CENTRAL EXCISE Vs. JAI SINGH KOTHARI

JUDGEMENT

(1.) THE Revenue has come up in appeal against the impugned Order -in -Appeal dated 24 -9 -99 passed by the Commissioner (Appeals) by which he had reversed the orders of Assistant Collector imposing penalties on the respondents for the failure to file the quarterly returns in time in respect of service tax as required under Section 70 of Finance Act. The facts leading to the appeal are as under : The respondents are stock brokers registered with Central Excise Department for the purpose of Service Tax under Section 69 of the Finance Act. They failed to file the quarterly returns for the quarters April to July, 1995, October to December, 1995, April to June, 1996 and July to September, 1996. They were served with two show cause notices dated 10 -1 -97 and June, 1997 for having contravened the provisions of Section 70(1) of the Finance Act. They thereafter filed the returns but no plausible explanation was offered for not filing the returns in time. The Assistant Commissioner through the Order -in -Original dated 19 -3 -98 imposed penalty of Rs. 59,900/ - at the rate of Rs. 100/ - per day for the late submission of the quarterly returns for the quarters, April to June, 1995, April to June, 1996 and July to September, 1996. He also imposed penalty of Rs. 17,600/ -, under Section 77 of the Finance Act, for late submission of the quarterly return for the quarter October to December, 96.

(2.) THE respondents challenged the said order of the Assistant Commissioner in appeal before the Commissioner (Appeals) who set aside the same. The operative part of his impugned order reads as under : I find there is a lot of merit in the submissions made by the appellant and respectfully following the ratio of the decisions referred to above, set aside the impugned order to the extent that it imposes penalty, in view of the facts referred to above.

(3.) THE Revenue has come in appeal against this impugned order of the Commissioner.