Penalty

CESTAT, MUMBAI BENCH

Soldiers Industrial Security Agencies

v.

Commissioner of Central Excise & Customs, Nashik

MS. ARCHANA WADHWA, JUDICIAL MEMBER

ORDER NOS. A/529 AND 530/C-IV/SMB/2007

APPEAL NOS. ST/302 AND 303/2006

MARCH 20, 2007

Section 76 of the Finance Act, 1994 - Penalty - For failure to pay service tax - Assessee was registered prior to introduction of Extra ordinary Taxpayers Friendly Scheme and had paid service tax along with interest prior to 30-10-2004 - Whether penalty could be levied upon assessee - Held, no [Para 2]

FACTS

The Asstt. Commissioner demanded service tax from the assessee along with interest and imposed penalty. The Commissioner (Appeals) enhanced the penalty amount. The assessee contended that it was covered under the Extraordinary Taxpayers Friendly Scheme as it had paid service tax along with interest prior to 30-10-2004. The Commissioner (Appeals), however, did not apply the provisions of the above Scheme on the ground that the assessee was registered prior to the introduction of the scheme and confirmed the demand.

On appeal:

HELD

In the case of CCE v. Bharat Security Services & Workers Cont. 2005 (188) ELT 454 (Tri. - Delhi) an identical plea raised by the revenue was rejected by the Tribunal, holding that the assessee having paid service tax along with interest prior to 30-10-2004 was not liable for penalty. Accordingly, in view of the ratio of the above decision, the impugned order of the Commissioner (Appeals) was to be set aside and the order passed by the original adjudicating authority was to be restored. [Para 2]