RAJA AGENCIES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE application for waiver of pre -deposit of penalty of Rs. 24,56,832 under Section 78, Rs. 100 per day up to 17 -4 -2006 and Rs. 200 per day or Rs. 2 per month whichever is higher for subsequent period under Section 76 of Chapter V of the Finance Act, 1994 is allowed as we note that the service tax demanded has been paid entirely, together with interest. We note that the impugned order of the Commissioner (Appeals) is one of dismissal for non -compliance with his direction for pre -deposit of Rs. 5 lakhs towards penalty. There is no finding on merits in the impugned order. Since pre -deposit of penalty has been waived by the Tribunal, we set aside the impugned order and remit the case to the Commissioner (Appeals) for fresh hearing on merits after extending a reasonable opportunity of being heard in their defence and without insisting on pre -deposit. The appeal is thus allowed by way of remand.