Penalty

CESTAT, NEW DELHI BENCH

Commission of Central Excise, Chandigarh

v.

AK & I Advertising

MS. JYOTI BALASUNDARAM, VICE PRESIDENT

FINAL ORDER NOS. 80, 81 OF 2008 SM (BR)

ST APPEAL NOS. 446 AND 447 OF 2007 - SMB

December 20, 2007

Section 76, read with section 78, of the Finance Act, 1994 - Penalty - For failure to pay service tax - Commissioner (Appeals) reduced penalty imposed on assessee under sections 76 and 78 on ground that principal amount of Service tax already been paid together with interest and, therefore, a lenient view was required to be taken - Whether since penalty prescribed under sections 76 and 78 is minimum penalty and further, since penalty imposed by adjudicating authority had not exceeded service tax payable by assessee, impugned order was to be set aside by restoring penalty to level imposed by adjudicating authority - Held, yes [Para 2]

CASE REVIEW

Trans (India) Shipping (P.) Ltd. v. CCE [2005] 2 STT 82 (Chennai - CESTAT) - followed [Para 2]