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2010 (1) TMI 325 - CESTAT, CHENNAIPenalty- Show-cause notice under Section 74 was issued proposing modification of the Order-in-Original by revising the penalty imposed under Section 76 which was calculated at the rate of Rs. 100/- to Rs. 200/- per week instead of Rs. 100/- per day. The notice also proposed imposition of penalty under Section 78. A fresh adjudication order was passed enhancing the penalty to Rs. 6,12,894/- @ Rs. 100/- for every day during the period of delay in payment of tax and dropping proceedings for imposition of penalty under Section 78. The Commissioner (Appeals) set aside the enhancement of penalty on the ground that it cannot be said that the imposition of penalty of Rs. 57,200/- was an error apparent on the face of the record requiring correction/rectification under Section 74; hence this appeal by the Revenue. Held that- The Revenue seeks to contend that in any event the penalty cannot be less than Rs. 100/- per day as per the statutory provision of Section 76. However, this does not amount to a mistake apparent on the record requiring rectification under Section 74 and if the Revenue was aggrieved by the imposition of the penalty of Rs. 57,200/-, the proper course to have been followed was to issue notice for revision in terms of Section 84 of the Finance Act, 1994 and proceed to pass fresh orders in revision. Thus, uphold the impugned order and reject the appeal.
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