Customs, Excise and Gold Tribunal - Delhi
Acme Tele Power Pvt. Ltd. vs Commissioner Of Central Excise on 19 December, 2007
Equivalent citations: 2008[10]S.T.R.416
ORDER
Jyoti Balasundaram, Vice-President
1. In this case, the entire Service Tax together with interest was paid by the appellants, who were found to have been providing services of Erection, Installation and Commissioning of plant & machinery and equipments. The appellants challenged the impugned order on the ground that, they were not to pay penalty due to instant payment of tax together with interest [the Commissioner (Appeals) has reduced the tax payment and proportionately scaled down the penalty amount to Rs. 3,97,634/-.
2. I have heard the learned JCDR for the respondent and perused the record. None is present for the appellants in spite of notice. I find that the issue has been settled by this Tribunal in the case of Mett Macdonald Ltd. v. CCE Jaipur , holding that, imposition of penalty is sustainable when tax liability was paid only after the inquiry was conducted by the Department.
3. Therefore, there is no merit in the appellants' contention that the payment of tax together with interest, prior to the issue of the show cause notice, would absolve them of the liability to pay penalty. Following the ratio of the above decision, I uphold the impugned order of imposition of penalty and reject the appeal (Dictated and pronounced in the open Court on the 19th day of December, 2007.)