Commissioner upholds minimum penalty under Section 76, reduces amount. Ignorance of law claim dismissed. Order affirmed, appeal disposed.

The Commissioner (Appeals) upheld the imposition of the minimum penalty under Section 76 of the Act but reduced the penalty amount from Rs. 69,900 to Rs. 15,900. The appellants' claim of ignorance of the law was dismissed due to belated payments. The impugned order was affirmed with the modification of the penalty amount, and the appeal was disposed of accordingly.

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Issues:
Imposition of penalty under Section 76 of the Act.

Analysis:
The appeal was filed against the Order-in-Appeal, and both sides were heard. The Commissioner (Appeals) focused on the issue of whether the penalty of Rs. 69,990 was justifiable. The appellants claimed ignorance of the law, but the Commissioner noted that this ignorance could not have continued for six months, as payments were made belatedly. Referring to a previous judgment, the Commissioner upheld the imposition of the minimum penalty under Section 76 of the Act. The Service tax for the relevant period was paid late by six months.

Upon reviewing the impugned order, it was found that the penalty imposable as the minimum penalty was Rs. 100 per day, amounting to Rs. 15,900. The imposition of the minimum penalty under Section 76 was upheld, but the penalty amount was reduced to Rs. 15,900 from Rs. 69,900 imposed by the lower authorities. The impugned order was upheld with this modification, and the appeal was disposed of accordingly.

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