1. Heard both sides. Shri Jagatpal Bajaj, CA appearing on behalf of the appellants submits that the Commissioner has wrongly enhanced the penalty to the tune of Rs. 23,125/- as against the penalty of Rs. 100/- imposed by the adjudicating authority Under Section 76 and a further penalty of Rs. 100/- imposed Under Section 77 of the Service Tax Act, 1994 for non-payment of Service Tax within the specified time and for non-filing of Return within the stipulated time for the period April, 2001 to March, 2003. He submits that the Commissioner had wrongly enhanced the penalty to the equal amount of Service Tax. He also submits that the entire Service Tax of Rs. 23,125/- has already been paid along with interest. The present appeal is for reduction in 100% penalty imposed by the Commissioner. He submits that due to some unavoidable reason, the Return could not be filed within the specified time.
1.2 The learned representative on behalf of the appellants submits that there is a total delay of 118 (65+53) days. Therefore, the penalty @ Rs. 100/- per day will work out to Rs. 11,800/- only. The learned DR appearing for the revenue reiterates the impugned order.
1.3 After hearing both sides and perusal of the case records I find that the Commissioner has wrongly enhanced the penalty to the tune of Rs. 23,125/- The penalty imposed by the adjudicating authority @ Rs. 100/- per day, works out to Rs. 11,800/- only. I accordingly reduce the penalty amount to Rs. 11,800/- as against the penalty of Rs. 23,125/- imposed by the Commissioner, after dispensation of the pro-deposit. The appeal stands disposed of accordingly at the stay stage itself.