TaxTMI 
TaxTMI 
2004 (10) TMI 15
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..... Against these penalties, the assessee preferred appeals to the Commissioner (Appeals) and the latter reduced the quantum of penalty in each case to Rs. 1,000/- . The Revenue is aggrieved by this reduction of penalty in these appeals. S/2/2003:  2. This is an appeal filed by the same assessee. This appeal does not figure in today's cause list, though it is ripe for hearing. As it has been pointed out by both sides that the issue in this appeal is similar to that involved in the above appeals of the Revenue, I have taken up this appeal with the consent of both sides. This appeal is against an order of the Commissioner, passed under Section 84 of the Finance Act, 1994, imposing penalty on the assessee under Section 76 of the said Ac....
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....l's decision in Palika Palace v. CCE [2001 (134) E.L.T. 677]. Ld. SDR has not accepted this explanation and has reiterated the grounds stated in the Revenue's appeals. The DR has also relied on the Karnataka High Court's judgment in Tata Consultancy Services v. UOI [2001 (130) E.L.T. 726 (Kar)].  5. I have carefully examined the records and considered the submissions of both sides. Section 76 of the Finance Act, 1994 reads as under: "Section 76. Penalty for failure to collect or pay service tax. - Any person, liable to pay service tax in accordance with the provisions of Section 68 or the rules made thereunder, who fails to pay such tax shall pay in addition to paying such tax, and interest on that tax in accordance with the provisi....
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....bove table correctly mentions the extent of delay of payments of service tax, involved in all the three appeals. For instance, there was a delay of 330 days in the payment of service tax which was due on 25-11-1999. As per Section 76, the minimum penalty is rupees one hundred per day and the maximum is rupees two hundred per day. There is a further rider to this, which is to the effect that any penalty to be imposed under the provision shall not exceed the quantum of service tax. In other words, the minimum penalty imposable is Rs. 100/- per day or an amount equal to service tax, whichever is lower. The original authority imposed this minimum penalty on the party. The first appellate authority has reduced it to Rs. 1,000/- after considering....