CCE Vs. T. STANES AND COMPANY LTD.

JUDGEMENT

(1.) THE respondents M/s. T. Stanes and Company Ltd. rendered Clearing and Forwarding Agents' Services to M/s. Indofill Chemicals Ltd. Mumbai. On scrutiny of the records of the respondents it transpired that they had short -paid the tax due during the period 1999-2003. The lower authorities found that the respondents had not included all elements of taxable value in the assessable value for the purpose of payment of service tax. The original authority demanded differential duty of Rs. 39,750/- for the period March 2000 to July 2003, the applicable interest thereon and imposed equal amount of penalty (under Section 76 of the Finance Act, 1994). In the impugned order, the Commissioner (Appeals) sustained the order passed by the original authority except reducing the penalty imposed under Section 76 of the Finance Act, 1994 from Rs. 39,750/ - to Rs. 10,000/-. The instant appeal has been filed by the Revenue for restoring the penalty imposed by the original authority.

(2.) THE main ground taken in the appeal filed by the Revenue is that the Commissioner (Appeals) did not have jurisdiction to reduce the penalty below the statutory minimum of Rs. 100/- per day for the delay in making good the short -payment of tax due under Section 76 of the Finance Act, 1994. Reliance has been placed on the decision of the Tribunal in Inma International Security Academy Pvt. Ltd. v. CCE, Chennai and CCE, Madurai v. Pandian Hotels Ltd. . It is submitted that the Commissioner (Appeals) had found that the respondents were aware of their tax liability but had suppressed the value of taxable services with intent to evade payment of tax. Therefore, the Commissioner (Appeals) did not have discretion to reduce the penalty below the statutory minimum prescribed under Section 76 of the Finance Act, 1994, it is argued.

(3.) THE learned JDR canvases the prayer urged in the appeal on the grounds raised therein.