COMMISSIONER OF CENTRAL EXCISE Vs. PANDIAN HOTELS LTD.

JUDGEMENT

(1.) These appeals of the Revenue are against reduction of quanta of penalties on the respondents, the respondents defaulted payment of service tax during the period November, 1999 to April, 2001. The payments were made belatedly. For the delay of payments, the original authority imposed penalties on the assessee under Section 76 of the Finance Act, 1994, which were quantitatively equal to the respective amounts of tax. Against these penalties, the assessee preferred appeals to the Commissioner (Appeals) and the latter reduced the quantum of penalty in each case to Rs. 1,000/ -. The Revenue is aggrieved by this reduction of penalty in these appeals. S/2/2003:

(2.) This is an appeal filed by the same assessee. This appeal does not figure in today's cause list, though it is ripe for hearing. As it has been pointed out by both sides that the issue in this appeal is similar to that involved in the above appeals of the Revenue, I have taken up this appeal with the consent of both sides. This appeal is against an order of the Commissioner, passed under Section 84 of the Finance Act, 1994, imposing penalty on the assessee under Section 76 of the said Act for delayed payment of service tax for the period October, 1999 to March, 2000. The Original authority had dropped the proposal to penalise the assessee under Section 76, against which the jurisdictional Commissioner as revisionary authority passed the impugned order.

(3.) In the first two appeals, the question arising for consideration is whether the lower appellate authority was right in reducing the quanta of penalties. In the third appeal, the question is whether the penalty was liable to be imposed on the assessee under Section 76, and, if so, to what extent ?