MAJALGAON SSK LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE appellant, M/s. Majalgaon SSK Ltd. is a sugar mill in the co -operative sector. In the year 2006 the appellant took on lease the management from the bank for rendering a sick unit namely, M/s. Bageswari SSK Ltd. One of the conditions of the lease was to retain the old staff of the said unit. The appellant further states that after the sugar season 2006 -07 as they could not run the factory profitably, they surrendered the unit back to the bank in August, 2008. In view of the taking over of the sick unit and the appellant involved fully to turn around, there was some lapses in making the compliance under the service tax provisions, inadvertently -Further, there is no conscious breach of law or contumacious activity regarding provisions of law on the part of the appellant The ld. Counsel further points out that in Para 6 of the appellate order under challenge, the appellate authority have taken note of the fact that service tax was paid on 5 -4 -2010, default is only of non -payment of interest till date of passing of the appellate order. The penalty was not set aside. It is further stated that interest amount was also paid in full on 22 -7 -2010 i.e. within one month of the passing of the appellate order. Thus vehemently prays for setting aside the penalty under Section 78 of the Act.

(2.) THE ld. DR relies on the order of the Commissioner (Appeals).