BSNL Vs. COMMISSIONER OF CENTRAL EXCISE, COCHIN

JUDGEMENT

(1.) THE assessee, a PSU Unit, has taken clearance from the Committee on Disputes and has filed this appeal against O -I -A No. 3/2003 -S.T., dated 20 -1 -2003 challenging the levy of interest of Rs. 19,009/ -. The appellants were earlier under the Ministry of Telecommunications before the confirmation of BSNL. They had deposited the duty but not under a proper Account Head, as the Account Head had not been allotted to them. Therefore, they contend that being a Government Department, they had to undergo various procedures and hence delay of 4 days would have been condoned and no penalty should have been levied. In this regard, they rely on the judgment rendered in their own case by Final Order No. 4/2003 -NB(A), dated 2 -6 -2003 by which the Tribunal, presided by the Honble President, has accepted the plea and has set aside the interest in like circumstances. Therefore, the learned Counsel submits that the ratio of the Tribunal ruling in their own case, setting aside the penalty, due to the circumstances explained, applies squarely to the facts of the case also and, therefore, the interest should be set aside.

(2.) THE learned SDR reiterated the submissions.

(3.) ON a careful consideration, we find that this Tribunal, in the appellants own case in the Final Order cites supra, has set aside the levy of interest on the ground of delay in depositing the Service Tax in the specific Account of the Central Government. The delay was examined and found to be condonable in the peculiar facts and circumstances of the case. The period also pertains to the same period as in the cited judgment. Hence, the explanation applies to the facts and circumstances of this case also and respectfully following the ratio of the Tribunal ruling in the appellants own case, the levy of interest is set aside by allowing the appeal.