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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, CALCUTTA
SMT. ARCHANA WADHWA , Judicial Member
M.K.C. & Co. -Appellant
Versus
Commissioner of Central Excise -Respondent
Final order no. a-1131/kol/2001, stay order no. s-1319 and Stay petition no. 845 of 2001 in appeal no. e-623 of 2001
Decided On : 11-12-2001
D.K. Saha,D.K. Bhowmick
1. After dispensing with the condition of pre-deposit of penalty, I take up the appeal itself with the consent of both sides.
2. Penalty of Rs. 6,300 (Rupees six thousand three hundred) has been imposed upon the appellant under the provisions of section 77 of the Finance Act, 1994 for late filing of the ST-3 Return. The said penalty has been imposed at the rate of Rs. 100 per day by observing that there was a delay of 63 days.
3. The appellants have relied upon the Tribunal’s decision in the case of CCE v. B.L. Co. 1998 (29) RLT 795 (CEGAT), wherein it has been held that section 77 prescribes minimum penalty of Rs. 100 and not Rs. 100 for every day’s delay in filing the return. My attention has also been drawn to another decision of the Tribunal in the case of Sajjan Kumar Kariwala v. CCE [1997] (20) RLT 885 (CEGAT-NZB), wherein after considering that Service Tax was a new tax at the relevant time and the appellant in that case, was a new assessee, the entire penalty was set aside. Relevant paragraph (5) of the said decision is reproduced below:-
"5. After careful consideration of the submissions, I find that Service Tax was introduced as a new tax. I also observe that the appellant was a new assessee and was not conversant with the filing of the return. Further, I also observe that the appellant was not doing any business and his tax return for the quarter was nil. Looking to the totality of the circumstances and the facts of the case, 1 hold that no case for imposing penalty is made out. In the circumstances, I set aside the order imposing the penalty."
4. The contention of the learned Consultant, Shri D.K. Saha is that late filing of return was on the ground that the Service Tax was imposed very recently and at that point of time, the assessee was suffering from jaundice.
5. Keeping in view the above fact as also the ratio of the relied-upon decision, I reduce the penalty from Rs. 6,300 to Rs. 1,000 (Rupees one thousand) only. Stay Petition and Appeal are disposed of in the above terms.
