ORDER
T. Anjaneyulu, Member (J)
1. Heard both sides.
2. M/s. Dangi financial & Management Ltd., Mumbai are holders of Registration Certificate. They were required to file quarterly returns in Form ST-3 in terms of Section 70(1) of the Finance Act, 1994 for the quarter ending September 96 and December 96 with in 15 days of the end of preceding quarter. The same was not furnished in time. Therefore, show cause notices under Section 70(2) were issued asking them as to why penalty should not be imposed under Section 77 of the Finance Act, 1994.
3. The Assistant Commissioner Service Tax of Central Excise, Mumbai after due enquiry found that ST-3 returns of the quarter ending September % and December 96 which were due to be filed on 15/10/96 and 15/1/97 respectively were filed 6n 27/11/96 & 17/1/97, after delay of 43 days and 26 days respectively. He has not accepted the explanation given by the appellant. In this case, since the concerned signatory was on leave and gone abroad, as such the delay occurred. Secondly, Ld. Asst. commissioner imposed penalty of Rs. 4300/- calculating at the rate of Rs. 100/- for 43 days for the 1st quarter and Rs. 200/- for delay in filing their ST-3 returns for the second quarter under Section 77 of the Finance Act, 1994.
4. The appellants counsel submits that the actual service tax amounting to only Rs. 4/- was deposited by the party concerned and for a meager amount of tax, heavy penalty is imposed which is not proportionate to the degree and gravity of the offence. It is his submission that the penalties imposed are heavy and exorbitant.
He relied upon the decision of the Tribunal and Courts which have taken lenient view and reduced the penalty.
i) Anchor Shipping Agencies v. CC.Ex. Mumbai – 1 2000(118) ELT 719 (Tribunal). In this case, there was delay of 11 weeks in filing the quarterly ST-3 returns, though the Service Tax was paid, minimum penalty of Rs. 100/- per week was found imposable. The penalty was reduced from Rs. 7700/- to Rs. 1100/- for delay of 11 weeks.
ii). Harital & Co v. Commissioner of Central Excise, Mumbai-1 [2000(115) ELT 375 (CEGAT – Mumbai)]. In this case, penalty for late filing returns under Section 77 was reduced from Rs. 10,800/- to Rs. 2,000/-.
5. Following the above said decision and considering the facts the case, I am of the view that penalty imposed is high & excessive and requires to be modified suitably and accordingly penalty of Rs. 4,800/- is reduced to Rs. 300/- and another penalty of Rs. 200/- is reduced to Rs. 100/-.
6. This appeal is partly allowed modifying the impugned order passed by the Assistant Commissioner Service Tax (Mumbai) in the above terms.
(Dictated in Court)