TMI Blog2003 (6) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee had failed to pay the service tax in time to the credit of the Central Government payable in respect of services rendered during the quarter ending 12/99 and 3/2000 by the 25th of the month immediately following the said quarter, was paid into the credit of the Central Government only on 4-4-2000 for the quarter ending December, 1999, 4-7-2000 for the quarter ending March, 2000. Therefore, there was a delay of 139 days while paying the service tax for the above said period and accordingly, the assessee had contravened the provisions of Sec. 68(2) of the Finance Act, 1994. The Show Cause Notice has been adjudicated by the Deputy Commissioner of Central Excise, Bangalore-II and vide his Order dt. 14-5-2001, imposed penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that from the language used in the construction of the statute, there is no doubt from the Sec. 76 of the Finance Act, 1994 stipulates certain minimum penalty in case there is an infraction of law. Such minimum penalty cannot be less than Rs. 100/- per day of delay but may extend up to Rs. 200/- per day. According to the review authority, the said provision puts a ceiling on the maximum penalty imposable as the amount of service tax payable. The adjudicating authority has mis-read the provisions while imposing the penalty. Since the Legislature has not inserted a pause by way of comma, after the words 'rupees one hundred', 'per day' used after the words 'rupees two hundred' shall apply to the words 'rupees one hundred' also. Therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncerned with Sec. 76 of the Finance Act and not under Sec. 77. In support of his contention that comma plays an important role in interpretation and construction of the statute, he referred to the Chapter "Punctuation" from principles of Statutory Interpretation by Justice G.P. Singh - Fourth Edition, 1988 and submitted that when a statute is carefully punctuated and there is doubt about its meaning a weight should undoubtedly be given to punctuation. The statute in question is found to be carefully punctuated, punctuation, though a minor element may be resorted to, for the purpose of construction. 9. On the other hand, Shri Ravi Shankar submitted that the view taken by the Supreme Court, in the case of A.K. Gopalan v. State o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty has the discretion to levy lesser amount, depending upon the facts and circumstances of each case. He submitted that mens rea is an essential ingredient to attract penalty under the quasi-criminal proceedings and mental state should not be presumed while imposing penalty relying upon the decision of the Supreme Court in the case of Hindustan Steel v. State of Orissa [1978 (2) E.L.T. J159 (S.C.)] and other series of cases. 12. I have carefully considered the matter. The Department's, contention is the word 'everyday' appearing after 'rupees two hundred' qualify the expression 'rupees one hundred' also. In other words, the Revenue's stand is that Sec. 76 prescribes the minimum penalty as 'rupees one hundred' for everyday and lay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r day. Even in the absence of comma after the words 'rupees one hundred' it cannot be presumed that section prescribes minimum penalty of Rs. 100/- per day. The section clearly says the sum shall not be less than Rs. 100/- which may extend to Rs. 200/- everyday during which such failure continues. Even in the absence of comma, it may be read as minimum penalty of Rs. 100/- and maximum may be Rs. 200/- for everyday. Even in the case of BL Company (supra), it was observed that in the absence of comma after Rs. 200/- makes it clear that everyday is qualifying only Rs. 200/-. As rightly observed by the Bombay High Court in the case of Cine Super 8 Pvt. Ltd . (supra) now, punctuation is only a minor element in construction of a statute, no do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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