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Issues:
Contestation of penalty under sections 76 and 77 of the Finance Act, 1994. Analysis: The appeal challenges the imposition of penalties under sections 76 and 77 of the Finance Act, 1994, as per the impugned order by the Commissioner (Appeals). The appellants do not dispute their liability to pay the tax for the relevant period stated in the order. They had already paid the tax along with interest. However, the penalty was levied due to their failure to deposit the tax within the specified timeframe. The appellants explained the delay by citing the serious illness of the Director's wife, but this reason was not accepted by the lower authorities. Interestingly, the Commissioner (Appeals) had previously accepted this same explanation for setting aside penalties for an earlier period, a decision upheld by the Tribunal in a prior order. Given this precedent, it was deemed unreasonable to deny the appellants the benefit of section 80 of the Finance Act, which allows for the waiver of penalties if a sufficient cause for delayed tax payment is demonstrated. In light of the above discussion and the precedent set by the earlier order, the impugned order imposing penalties is overturned, and the appeal of the appellants is granted.
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