CCE/CST Vs. AVTAR KRISHAN KHOSLA AND JUGAL

JUDGEMENT

(1.) WHEN the matter was called none appeared on behalf of the respondents in spite of notice. Notices issued to the respondents were received back with the postal remarks 'Left'. Therefore, appeals are being taken up for hearing in the absence of the respondents. Since the issue involved is common, both the appeals are taken together.

(2.) HEARD learned SDR. Revenue filed these appeals against the impugned orders whereby penalties imposed under Section 76 of the Finance Act were set aside on the ground that there was no proposal in the show cause notice to impose penalties under the said section. Penalty under Section 76 of the Finance Act was set aside on the ground that amount of service tax along with interest had been paid prior to issuance of show cause notice.

(3.) LEARNED SDR submitted that in the show cause notices there were specific proposal to impose penalty under Section 77 of the Finance Act. I have gone through show cause notices and I find that there was specific averment as to why penalty should not be imposed under Section 77 and 76 of the Finance Act. In view of this finding of the Commissioner (Appeals) that there was no proposal to impose penalty under Section 77 of the Finance Act is not sustainable, hence, set aside.