TMI Blog2004 (10) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... Act 1994 for failure to collect or pay service tax. 2. The appellants are engaged in manufacture and installation of air conditioning systems. It was alleged that during the period from October, 1998 to 2001, they provided services as Consulting Engineers but they did not got registered with the Department and pay Service tax as Consulting Engineer. Show Cause notice was issued to them by the department demanding Rs. 1,28,217/- towards service tax on services provided by them during the aforesaid period. Penalty was also proposed on the appellants under Sections 76, 77 78 of the Finance Act, 1994 and interest on the tax not paid. On adjudication the original authority confirmed the demand of the tax with interest thereon and imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cribed under Section 76 of Finance Act, 1994 is Rs. 100/- only and not Rs. 100/- for everyday of delay. He, therefore, pleaded that Section 76 of the Finance Act, 1994 prescribes minimum penalty as Rs. 100/- only subject to maximum of Rs. 200/- per day. In support of his pleadings he also referred to amendment proposed in Section 76 by Finance Bill 2004-2005 to the following effect : "in Section 76 for the words "one hundred rupees" the words "one hundred rupees for every day during which such failure continues" shall be substituted" and stated that this amendment shows that earlier penalty of Rs. 100/- was absolute. He also pleaded that Section 80 of the Finance Act 1994 gives authority for not imposing any penalty on the assessee u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d rupees, therefore, everyday qualifies both one hundred rupees but which may extend to two hundred rupees. He referred to page-133 of the Book, Statutory Interpretation by the Late Sir Rupert Cross (IIIrd Edition) which reads as under : - "Punctuation forms part of the statute and, even if the reader has to be wary of older Acts, in which punctuation was inserted after enactment by the printer, the punctuation of modern statutes must be given the significance it has to the ordinary user of the English language. As Lord Lowry put it : "I consider that not to take account of punctuation disregards the reality that literate people, such as Parliamentary draftsmen, punctuate what they write, if not identically, at least in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y which shall not be less than one hundred rupees but which may extend to two hundred rupees for everyday during which such failure continues, so, however, that the penalty under this clause shall not exceed the amount of service tax that he failed to pay. Penalty for failure to furnish 77. prescribed return. - If a person fails to furnish in due time the return which he is required to furnish under sub-section (1) of Sec. 70 or by notice given under sub-section (2) of that section, he shall pay, by way of penalty, a sum which shall not be less than one hundred rupees, but which may extend to two hundred rupees for every day during which the failure continues." He pleaded that at the relevant time if Sections 76 and 77 are comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Milan Tent Palace [2000 (131) E.L.T. 274]. There are contrary decisions also as relied upon by the appellant. On careful examination of the provisions of Section 76, which is as under : - " 76. Penalty for failure to collect or pay service tax. - Any person, liable to pay service tax in accordance with the provisions of Sec. 68 or the rule made thereunder, who fails to pay such tax shall pay in addition to paying such tax, and interest on that tax in accordance with the provisions of Sec. 75, a penalty which shall not be less than one hundred rupees but which may extend to two hundred rupees for everyday during which such failure continues, so, however, that the penalty under this clause shall not exceed the amount of service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench and we have heard the ld. Advocate for the appellants as well as ld. SDR for Revenue on merit, for imposition of penalty, we are deciding the issue of imposition of penalty under Sections 76 and 77 also. We find that under Section 80 which reads as under : " Penalty not to be imposed in 80. certain cases. - Notwithstanding anything contained in the provisions of section 76, section 77, section 78 or section 79, no penalty shall be imposable on the assessee for any failure referred to in the said provisions if the assessee proves that there was reasonable cause for the said failure." there is a provision for not imposing any penalty if the assessee proves that there was a reasonable cause for the said failure. We find that ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
