Service tax delay penalty under Section 76 is a daily minimum, not a fixed cap, and late-return relief failed.

Section 76 of the Finance Act, 1994 was interpreted as prescribing a minimum penalty of Rs. 100 per day for delayed payment of service tax, capable of extending to Rs. 200 per day for continued default. Applying the binding Larger Bench view, the Tribunal noted delays in payment ranging from 95 to 187 days and treated the penalty as consistent with the statutory scheme. The separate challenge to penalty for late filing of returns was not accepted as an independent basis for relief, so the penalty was upheld.

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Issues: Whether penalty under Section 76 of the Finance Act, 1994 for delayed payment of service tax was confined to Rs. 100 per day, and whether the penalty imposed for late filing of returns was sustainable.

Analysis: The Tribunal relied on the Larger Bench view that Section 76 prescribed a minimum penalty of Rs. 100 per day, which could extend to Rs. 200 per day for each day of continued default. Since the service tax was paid after the due dates with delays ranging from 95 days to 187 days, the penalty was held to be in accordance with the binding Larger Bench decision. The challenge to the penalty for late filing of returns was not accepted as a separate ground for relief.

Conclusion: The penalty imposed was upheld and the challenge failed.

Ratio Decidendi: Where Section 76 of the Finance Act, 1994 is applicable, the penalty is not confined to Rs. 100 per day but operates as a minimum amount for each day of default, as interpreted by the Larger Bench.

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