Custom, Excise & Service Tax Tribunal
C.C.E.& Cus., Surat I vs Abg Shipyard Ltd on 23 August, 2017
CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL, West Zonal Bench, 2nd Floor, Bahumali Bhavan, Asarwa, Ahmedabad Service Tax Appeal No.12903 of 2013-SM with Cross-Objection No.13820 of 2013 Arising out of the Order-in-Appeal No.CCEA-SRT-I/SSP-085/2013-14 U/S35A(3) dated 29.5.2013passed by the Commissioner (Appeals), Central Excise,Customs & Service Tax, Surat I. C.C.E.& Cus., Surat I .. Appellant Vs. ABG Shipyard Ltd .. Respondent
Appearance:
Present Shri Sameer Chitkara, A.R. for the Appellant-Revenue Present Shri Jigar Shah, Advocate for the Respondent Coram: Honble Dr. D.M. Misra, Member (Judicial) Date of hearing/decision: 23.8.2017 Final Order No.A/11964/2017 Per Dr. D.M. Misra:
Heard both sides. The short issue involved in the present appeal is: whether the penalty under Section 76, 77 and 78 set aside by the ld. Commissioner (Appeals) invoking Section 80 of the Finance Act, 1994 is correct in law or otherwise.
2. Ld. Advocate for the Respondent submits that the Respondent had received External Commercial Borrowings (ECB) during April 2006 and September 2006 from ICICI Bank, Hong Kong Overseas Branch through their Headquarters located in India. Later, on the insistence of the Department and receiving a communication from the ICICI Bank, India, the Respondent had discharged the service tax of Rs.15,74,919/- with interest in 2011. Taking into consideration that the delay was due to late receipt of clarification from ICICI Bank and other circumstances, the ld. Commissioner (Appeals) invoking Section 80 of the Finance Act, 1994 dropped the penal provisions against the Respondent.
3. The ld. A.R. for the Revenue reiterates the grounds of appeal.
4. The Ld. Adv. for the Repondent submits that in similar facts and circumstances, this Tribunal has dropped the penal proceedings in the case of Ratnamani Metal & Tubes Ltd. Vs. C.S.T., Ahmedbad vide Final Order No.A/11409/2017 dt.18.07.2017.
4. I find that in similar circumstances in Ratnamai Metals & Tubes Ltd.s case(supra) it is observed that penal provision cannot be invoked. Following the said precedent, I do not find merit in the appeal filed by the Revenue and accordingly dismissed. Cross Objection also stands disposed of.
(Dr.D.M. Misra) Member (Judicial) scd/ ST/12903/2013-SM 2