MESSENGERS Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) IN the instant case, appellants challenge the penalty of Rs. 90,000/ - imposed on them under Section 76 of the Finance Act, 1994 (the Act). During the period 1/2003 to 9/2003, the appellants did not pay tax due on the courier service rendered by them. On initiation of proceedings, the appellants paid tax due along with interest. Penalty imposed is challenged on the ground that once duty and interest are paid, there could not be penalty under Section 76 of the Act.

(2.) HEARD both sides. Section 76 of the Act as it existed at the material time reads as follows