PUNEET TELECOM Vs. CCE

JUDGEMENT

(1.) THE relevant fact of the case, in brief, are that during the course of audit of M/s. Spice Communication (P) Ltd. it has been noticed that they have appointed dealers/franchisees throughout the state of Punjab for providing Mobile Telephone services and they have entered into contract with each service provider. The appellants is one of the dealers/franchisees of Spice Communication (P) Ltd. They received an amount of Rs. 98,100/ - as dealers commission and franchisees commission for the period from 1.7.2003 to 31.3.2004. It was noticed that the appellants is liable to pay tax under the category of "Business Auxiliary Services" w.e.f. 1.7.2003 under dated 20 June, 2003. The appellants furnished details of commission received by them from M/s. Spice Communication (P) Ltd. under the agreement. They have deposited their tax of Rs. 7,848/ - along with interest of Rs. 1742/ -. The original authority confirmed the demand of tax of Rs. 7848/ - along with interest and appropriated the said amount as already deposited by them. He also imposed penalty of Rs. 100/ - and Rs. 200/ - under Section 76 and 77 under Finance Act, 1994. The Commissioner Central Excise revised the adjudication order under Section 84 of the Act. By the impugned order, the Commissioner imposed penalty of Rs. 500/ - under Section 75A, Rs. 100/ - per day subject to maximum of Rs. 7848/ - under Section 76 and penalty of Rs. 7848/ - under Section 78 of the Act for suppressing the value of taxable service from the department. Hence, the appellant filed this appeal.

(2.) LEARNED D.R. on behalf of the Revenue reiterates the findings of the Commissioner. He submits that there is a delay in depositing the tax and, therefore, imposition of penalty is justified. He also submits that the original authority exercised the power under Section 80 of the Act on the ground that they have deposited the tax before issue of show cause notice without any sufficient reason as required under the said section.

(3.) IN view of the above discussion, order of the Asst. Commissioner is restored and the order of the Commissioner is set aside. Appeal filed by the appellants is allowed.