1998 (12) TMI 345 - CGOVT - Indian Laws

Summary

Issues:
1. Imposition of penalty for delayed submission of Foreign Travel Tax (FTT) returns and delayed payment of FTT.
2. Plea for waiver of penalty due to delay caused by airlines.
3. Interpretation of relevant sections and rules regarding FTT collection, payment, interest, and penalties.
4. Assessment of penalties imposed under Section 38(3) of the Finance Act, 1979 and Rule 10A of the FTT Rules, 1979.

Analysis:

1. The Assistant Commissioner imposed penalties on M/s. Cambata Aviation Ltd. for delayed submission of FTT returns and delayed payment of FTT. The Commissioner (Appeals) upheld the penalties, leading to the revision applications against the Order-in-Appeal.

2. The advocate for the appellant pleaded for mercy, citing the organization's newness and the delay being relaxable. He argued that since the tax collected was deposited with interest for the delay, the penalty should be waived, attributing the delay to the airlines.

3. The Government noted that the applicants were authorized agents of M/s. Malaysia Airlines. The judgment referenced the relevant sections of the Finance Act, 1979, as amended by the Finance Act, 1994, outlining the collection, payment, interest, and penalties related to FTT.

4. A detailed analysis of the applicable sections and rules revealed that FTT is to be collected by carriers and deposited into the treasury within thirty days. Default in payment incurs interest, and penalties are imposed for delayed submission of FTT returns and payments, following principles of natural justice.

5. The judgment concluded that the imposition of penalties under Section 38(3) of the Finance Act, 1979, and Rule 10A of the FTT Rules, 1979 was justified. Penalties of Rs. 2,500/- and Rs. 17,000/- were deemed appropriate based on the rules and regulations governing FTT collection and payment.

6. Ultimately, the revision applications were found to lack merit, leading to their rejection by the authorities. The penalties imposed on M/s. Cambata Aviation Ltd. were upheld, emphasizing adherence to the statutory provisions and rules governing FTT collection and penalties.

This comprehensive analysis of the judgment highlights the issues involved, the arguments presented, and the legal interpretation applied in deciding the case related to the imposition of penalties for delayed submission and payment of Foreign Travel Tax.