1998 (12) TMI 345

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.... date FTT collected for the money Amount collected Rs. Date of payment Penalty imposed under Delayed in submission of FTT return Rule 10A r/w. Rule 9 Rs. u/s 38(3) of FA, 1979  Rs 1. 11/FTT/98, dt., 9-3-98 Nov. '97 14,21,250/- 31-12-97 2500/- 2,84,250/- One day 2. 13/FTT/98, dt., 11-3-98 Oct. '97 3,000/- 12-12-97 1700/- 600/- 30 days The Assistant Commissioner ordered imposition of penalty for delayed submission of Foreign Travel Tax returns (FTT returns) and for delayed payment of the Foreign Travel Tax (FTT) beyond the prescribed period. The Commissioner (Appeals) rejected the appeals. 2. Sri K.G. Seth, Advocate was heard on 16-11-1998 and 2-12-1998. The ....

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....tax to the credit of the Central Government under sub-section (2) of Section 35 in accordance with the rules made under this Chapter, he shall pay the interest on the amount of tax not so paid for the entire period for which payment of such tax has been delayed, at such rate, not below twenty per cent, and not exceeding thirty per cent, per annum, as the Central Government may, by notification in the Official Gazette, specify in this behalf. Sec. 35A(2) Where, on or before the date of commencement of Section 97 of the Finance Act, 1994, the foreign travel tax had not been paid by any carrier or other person to the credit of the Central Government in accordance with the rules made under this Chapter, the carrier or other person ....

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....ce where the customs port or customs airport of departure of the ship or aircraft is situated." 5. A harmonious reading of the above Sections and Rules would reveal that FTT are to be collected by the carriers undertaking the carriage of passengers on journey in their air crafts; that such FTT collected are to be deposited into the treasury before expiry of thirty days; that for default of payment of FTT collected the carriers were to make the payment together with interest on the amount of tax not so paid for the period for which such tax has been delayed; that penalty of not less than one fifth but which may extend three times of the amount of tax not so paid within the prescribed time limit also becomes payable after due observan....