Penalty

CESTAT, MUMBAI BENCH

Agarwal Trading Co.

v.

Commissioner of Central Excise, Nasik

MRS. ARCHANA WADHWA, JUDICIAL MEMBER

ORDER NO. A/2078/C-IV/SMB/WZB/2006

IN APPEAL NO. ST/73/2006

December 11, 2006

Section 76, read with section 77 of the Finance Act, 1994 - Penalty - For failure to pay service tax - Assessee was rendering service of clearing and forwarding agent and was liable to pay service tax - Since there was delay in payment of service tax, penalties under sections 76 and 77 were imposed upon assessee - However, Commissioner, on review, enhanced penalty amount on ground that assessee had not been able to show any justifiable reason for delay in payment of service tax - Whether since there was discrepancy in computing number of day’s delays in depositing service tax, impugned order was to be set aside and the matter was to be remanded to original adjudicating authority for recalculation of penalty almost in terms of section 76 - Held, yes [Para 4]