ELECON CARGO PVT. LTD. Vs. CST

JUDGEMENT

(1.) THE Appellants field this appeal against the revised order of the Commissioner of Central Excise whereby penalty of Rs. 8,911/ - was imposed under Section 76 of the Finance Act, 1944.

(2.) After hearing both the sides and on perusal of the record, I find that the Adjudicating Authority did not impose any penalty in exercise of power under Section 80 of the Finance Act. He observed that the appellants paid the tax with interest of Rs. 736/ - before issue of show cause notice and there is reasonable cause for delay in payment of tax. The Commissioner of Central Excise revised the Adjudication Order and imposed penalty. The learned Counsel produced the letter dated 24.4.04 of the appellant addressed to the Superintendent of Service Tax which indicates that the appellants firm was proprietorship concern and it was transferred to a Private Limited Company. It is also noticed that the appellants are filing the returns regularly since 2005. I find that the Adjudicating Authority has recorded the reasons for non -imposition of penalty in exercise of discretion conferred on him under Section 80 of the Act. The Commissioner revised the Adjudication order on the ground that the appellant is a private limited company and they cannot ignore responsibility for late payment of tax and filing of return.

(3.) AFTER considering the facts and circumstances of the case, I find the finding of the Adjudicating Authority is reasonable and has rightly dropped the penalty under Section 80 of the Finance, Act, 1994. Accordingly, the impugned order of Commissioner is set aside and the order of the Adjudicating Authority is restored. The appeal is allowed with consequential relief.