SANGAM PLACE Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) SHRI Pawan Arora,Id.Advocate arguing the case for waiver of pre -deposit of penalty submits that in the instant case the total amount of duty was only Rs.560/ -. He submits that the penalty of Rs.46,800/ - is out of all proportion. He submits that the applicant was new company and was not conversant with service tax matter and hence there was delay in submission of quarterly return and prays that the penalty may be waived.

(2.) SHRI S.N.Singh, Id.DR submits that the penalty under the Service Tax Act in terms of Section 77 is mandatory. He submits that there was a delay of 288 days and, therefore the authorities below have rightly imposed a penalty. He, therefore submits that since the penalty is mandatory, the applicant may be directed to deposit the entire amount of penalty.

(3.) WE have heard the rival submissions. We note that Section 77 of the Service Tax Act provides for a penalty of Rs.100 to Rs.250 per day during the material period. There was delay of 288 days. Looking to the fact that the applicant was not conversant with the law as the tax was imposed for the first time as also the fact that the applicant is poor person, we direct the applicant to deposit a sum of Rs.28,000/ - on or before 23.7.2001.