2008 (1) TMI 133

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....nt filed this appeal against the order in revision passed by Commissioner of Central Excise whereby the penalties imposed under Section 76 of Finance Act was enhanced to @ Rs.100/- per day for delay in payment of Service Tax. 3. The contention of the appellant is that the amount of Service Tax along with interest was paid even prior to issuance of show-cause notice.  A show-cause notice wa....

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..... The contention of the appellant is that the Commissioner of Central Excise has no power to enhance the penalty in case there is no demand in the show-cause notice.  The appellant relied upon the decision of the Tribunal in the case of Markfed Instruments Pvt. Ltd. Vs. CCE reported in 2006 (3) STR 70.= 2002 (146) E.L.T. 466.  The appellant submitted that this decision has been followed ....

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.... M/s Centrum Travels Pvt. Ltd. Vs. CCE, New Delhi vide Final Order No. 222/07-SM(BR) dated 5.10.06 [2007 (6) S.T.R. 254] the Tribunal set aside the penalty after taking into consideration the Tax Friendly Scheme.  The contention is that in the present case as the assessee has shown reasonable cause for failure to deposit the tax of payment, therefore, is not liable for penalty. 7. The cont....

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....s in the Markfed Instruments Ltd. (supra) are different.  In that case, there was no demand and  interest in the show-cause notice and the Commissioner of Central excise while exercising the power under Section 84 demanded interest in respect of Service Tax.  The Tribunal held that in the initial show-cause notice there was no demand of interest, therefore, Commissioner of Central E....