LOCKWOOD INDUSTRIAL AND Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) HEARD the ld. D.R.

(2.) THE Dy. Commissioner (ST) has confirmed the interest amount of Rs. 2,066/ - under Section 75 of the Central Excise Rules and the amount already paid as provided against interest. Further, he imposed penalty of Rs. 40,400/ - under Section 76 of the Finance Act, 1994. Further, a sum of Rs. 3,000/ - was also imposed towards penalty under Section 77 of the Finance Act, 1994.

(3.) THE appellant's main contention is that they do not come under the net work of Service Tax. The amount totally payable under the impugned order is less than Rs. 45,000/ -. Secondly, the impugned order is non -speaking one and there are no mala fide intention on their part in delaying the payment. The appellants rely upon the case law of CCE, Mumbai v. Top Detective and Security Services Pvt. Ltd. . It is held in this case that Section 76 and 77 of the Finance Act, 1994 are not mandatory. Further, they rely upon the case of CCE, Rajkot v. Air Express Courier Services . In this case, the assessee has not failed to discharge Service Tax liability, but failed to file Return in time and in that circumstances, it is held that this is a procedural lapse and no penalty is leviable. Lastly, they rely upon the case of Catalyst Capital Service Pvt. Ltd. v. CCE, Mumbai -IV . In this case, the penalty was waived as sufficient cause was shown since no mala fide intention in making delayed payment was found.