COMMISSIONER OF CENTRAL EXCISE Vs. MAHADEV CABLE NET

JUDGEMENT

(1.) REVENUE is in appeal against the decision of the Commissioner (Appeals) for enhancement of penalty under Section 76 on the three respondents. The three respondents are engaged in providing cable service and a case of nonpayment/short -payment of service tax was registered against them. All the appellants paid the service tax with interest before issue of show -cause notice and the penalty under Section 78 was also paid within 30 days thereby it got reduced to 25 per cent. All the respondents filed the appeal before Commissioner (Appeals) seeking relief of penalty under Section 76 only. After due consideration Commissioner (Appeals) reduced the penalty and hence the appeal.

(2.) THE learned DR, submits that having upheld the penalty under Section 78 of Finance Act, 1994, it is quite apparent that Commissioner (Appeals) did not consider that appellants had reasonable cause for non -payment of service tax for the purpose of imposition of penalty under Section 78 and, therefore, he could not have taken a different view as regards Section 76. No one is present on behalf of the respondents. However, written submissions have been received from them. The respondents have argued that Commissioner had rightly taken a decision to reduce the penalty. They submit that they had to pay the service tax even though they had not collected the same from their customers. Further, the main appellant had passed away. Being small scale operators, they had difficulty in paying service tax.