M.G. MOTORS Vs. CCE

JUDGEMENT

(1.) THE appellants filed this appeal against imposition of penalties.

(2.) THE relevant facts of the case, in brief, are that the appellants are authorised dealer of Maruti Udyog Ltd. They were receiving commission from M/s. Maruti Udyog Ltd. for arranging loan to the customers. During the course of survey, it was noticed that the dealers of the Maruti Udyog Limited were getting commission for providing bank loans through Maruti Finance. Accordingly, by letter dated 14.09.2006, the Superintendent of Central Excise requested the appellants to deposit the tax. The appellant by their letter dated 18.09.2006 informed that M/s. Maruti Udyog Ltd advised them to deposit the tax on the commission. Accordingly, they deposited the entire amount of tax of Rs. 5,02,443/ - along with interest of Rs. 63,735/ - vide TR -6 Challan dated 16.09.2006. The Original Authority confirmed the demand of tax and appropriated the amount of tax as deposited by them along with interest. He also imposed penalties under Section 75A, 76 and 78 of Finance Act, 1994. The Commissioner (Appeals) upheld the adjudication order.

(3.) LD . DR reiterates the findings of the Commissioner (Appeals). He submits that the appellants deposited the duty after detection by the Central Excise Officers and, therefore, imposition of penalties are justified. He also submits that the tax was levied in July, 2003 and they deposited the tax in September, 2006 after detection by the Central Excise Officers. Thus, the imposition of penalty under various Sections of the Act is warranted.