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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, BANGALORE
P.G. CHACKO, M. VEERAIYAN, JJ.
Commissioner of Central Excise, Mangalore -Appellant
Versus
Syndicate Bank -Respondent
FINAL ORDER NO. 411 OF 2012 APPEAL NO. ST/577 OF 2010, 411 of 2012, 577 of 2010
Decided On : 18-06-2012
N. Jagdish,S. Ananthan
P.G. Chacko, Judicial Member - This is an appeal filed by the department seeking to penalise the respondent under Sections 76 to 78 of the Finance Act, 1994.
2. In an order passed by the original authority in adjudication of a show-cause notice which inter alia invoked Sections 76 to 78 ibid against the respondent, no penalty under any of these provisions was imposed on them by the Assistant Commissioner, invoking Section 80 of the Act. Though the order-in-original was proposed to be reviewed under Section 84 of the Act, the learned Commissioner dropped the proposal. Hence the present appeal of the department which is directed against the order passed by the Commissioner as revisionary authority.
3. After hearing the learned Superintendent (AR) for the appellant and the learned consultant for the respondent, we find that the short question arising for consideration in this appeal is squarely covered against the appellant by a judgement of the Hon'ble High Court of Karnataka viz. CST, Service Tax Commissioner v. Motor World wherein one of the questions of law considered by the Hon'ble High Court was 'Whether the revisionary authority has jurisdiction to impose penalty for the first time when it has not been imposed by the adjudicating or assessing authority by invoking Section 80 and the same was answered thus :
"When the assessing authority, in its discretion has held that no penalty is leviable, by virtue of Section 80 of the Act, the revisionary authority cannot invoke its jurisdiction and impose penalty for the first time."
This Bench had held to the same effect in the case of Sneha Minerals v. CCE
4. In view of the aforesaid case law, we sustain the impugned order and dismiss this appeal.
