TaxTMI 
TaxTMI 
2017 (10) TMI 455
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.... having been introduced with effect from 10 May 2013, it cannot be made applicable retrospectively to any offence committed prior to the said date. Both the above propositions are upheld by the Hon'ble Bombay High Court and approved by the Hon'ble Supreme Court by dismissing the SLP filed by the government against the judgment of the Hon'ble Bombay High Court in case of S.L. Korloskar Vs. Union of India [1993(68) ELT 533(Bom)]. He further submits that the SPL filed by the Revenue against the above judgment of the Hon'ble Bombay High Court has been dismissed by the Hon'ble Supreme Court[1997(94)ELT A248(SC)]. 3. On the other hand, Shri. Roopam Kapoor, Ld. Commissioner(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He made following submission: (a) The Advocate for appellant, in their submissions has sought to rely upon the judgment of Hon'ble Bombay High Court in the case of S.L.Kirloskar Vs. UOI. Said judgment is not applicable in the instant case as the relevant section of the Central Excise Act which has been examined by the Hon'ble Court uses the word 'manufacturer'. There is no doubt about the proposition that if the wor....
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....submitted that in the case of Prabhat Zarda Factory (India) Ltd. Vs. CCE Patna [2002-TIOL-232-CESTAT-KOL], the Hon'ble Tribunal, while considering the penalty imposition on the individual Director had observed that as the penalty has been imposed on Prabhat Zarda Factory (India) Ltd, there is no justification for imposition of separate penalty upon the Director. It is pertinent to note that Hon'ble Tribunal did not, at any stage, say that there is no provision for imposition of penalty on the Director. It is, therefore, implied that the Hon'ble Tribunal had accepted the provision of imposition of penal action on Director under the provisions of Finance Act 1994. (f) The case of M/s. United Enterprises Vs. Commissioner of Central Excise & Service Tax, Patna [2013 (29) STR 605 (Tri-Kolkata)], was also brought to the notice of the Bench wherein the Co-ordinate Bench at Kolkata had, while setting aside the penalty on the Director, had observed that the said penalty is set aside as "Both the authorities below have not recorded specific involvement of Shri Atul Jain in the short/non-payment of Service Tax warrants the personal penalties against him --------". It is submitted that in t....
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.... unpaid tax can be made under the statute. Therefore by not paying the dues, the company admittedly contravened the provisions of the chapter of Finance Act,1994 and rules made thereunder. As regards individual persons, in the present case, directors and employees of the KAL are not liable to discharge the service tax liability of KAL, therefore the appellants have not contravened the provisions of Act or rules made thereunder. 7. In section 77(2) of Finance Act, 1994, the term any person means a person who is liable to comply with the provision(s) of the act and/or rules made thereunder. From the adjudication order, it is seen that no provision of law was quoted therein which binds the present appellants to follow certain legal provisions of the act and/or rules made thereunder. In this position, next question arises, then on whom the provision of section 77(2) shall apply. The simple answer is the person who is legally bound to comply the various provision of chapter of Finance Act,1994 and/or rules made thereunder. As regards provisions of the chapter of Finance Act, 1994 and/or rules made thereunder it is meant for levy of service tax and prescribed procedures therefore. The....
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....goods specified therein or abets in making such invoice; or (ii) any other document or abets in making such document, on the basis of which the user of said invoice or document is likely to take or has taken any ineligible benefit under the Act or the rules made there under like claiming of CENVAT credit under the CENVAT Credit Rules, 2004 or refund, shall be liable to a penalty not exceeding the amount of such benefit or five thousand rupees, whichever is greater. Rule 27. General penalty. - A breach of these rules shall, where no other penalty is provided herein or in the Act, be punishable with a penalty which may extend to five thousand rupees and with confiscation of the goods in respect of which the offence is committed. From the above rules, it is found, Rule 26 is invokable on the individual person for the specific acts of the individual person prescribed therein. Under this rule a person, other than an assessee, can be penalised. Unlike this rule 26, there is no pari materia rule in the chapter of the Finance Act, 1994 or in the Rules made thereunder. Despite existing of Rule 26, a Rule 27 was made to penalise the assessee, which is pari materia to ....
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....rred to as the declared value) is higher than the value thereof, to a penalty not exceeding the difference between the declared value and the value thereof or five thousand rupees, whichever is the greater; (iv) in the case of goods falling both under clauses (i) and (iii), to a penalty not exceeding the value of the goods or the difference between the declared value and the value thereof or five thousand rupees], whichever is the highest; (v) in the case of goods falling both under clauses (ii) and (iii), to a penalty 10[not exceeding the duty sought to be evaded on such goods or the difference between the declared value and the value thereof or five thousand rupees], whichever is the highest. SECTION 114AA. Penalty for use of false and incorrect material. - If a person knowingly or intentionally makes, signs or uses, or causes to be made, signed or used, any declaration, statement or document which is false or incorrect in any material particular, in the transaction of any business for the purposes of this Act, shall be liable to a penalty not exceeding five times the value of goods. SECTION 117. Penalties for contravention, etc., not expressly mentioned. ....