2008 (7) TMI 92

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....9/04 -NB(S), filed by the assessee was allowed. 2. Following substantial question of law has been raised by the Revenue in this appeal: Whether, the penalty under Section 77 of the Finance Act, 1994 justified in respect of default in submitting ST-3 return for period prior to 31-3-2000, even though the same was filed on 23-1-2002 i.e. long after the amendment in the Statute with retrospective effect came into force vide Finance Act, 2000? 3. We heard learned Counsel for the parties. 4. Brief facts of the case are that respondent-assessee M/s. Maha Laxmi Sugar Mills Company Ltd., Iqbalpur, Haridwar are manufacturers of sugar, and also engaged in the business of providing service of transport of goods. The assessee has Service tax....

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....roper to mention here relevant provision of law, applicable to this case. Section 70 of the Finance Act, 1994, reads as under: "70. Person responsible for collecting service tax to furnish prescribed return. - (1) Every person responsible for collecting the service tax shall furnish or cause to be furnished to the Central Excise Officer in the prescribed form and verified in the prescribed manner, a quarterly return, within fifteen days of the end of the preceding quarter, showing - (a) the aggregate of payments received in respect of the value of taxable services; (b) the amount of service tax collected; (c) the amount of service tax paid to the credit of the Central Government; and (d) such other particulars as may be pr....

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....y day during which the failure continues." 6. Now, we have to examine whether, the CESTAT has committed any error of law by setting aside the penalty imposed by the Commissioner, Central Excise, in the matter? Broadly speaking, it is settled principle of law that the penalty is required to be imposed wherever the assessee avoids or attempts to avoid to pay the tax. The circumstances of the present case, which have come on the record, in the orders passed by the Deputy Commissioner and the Commissioner, Central Excise, disclose that the return ST-3 with regard to which the assessee is said to have committed default pertains to the quarter ending December, 1997. It is also not disputed that the said return was submitted by the assessee on ....