2007 (12) TMI 155

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..... interpretation of provision of law, the penal provisions cannot be invoked – penalty rightly set aside by Comm(A)– as per Not. 4/03, interest shall be paid after 6 months from 14-5-03, on default in payment of tax – hence Comm (A) correctly modified the adj. order on recovery of interest - ST/470/2007-SM - 166/2008-SM(BR)(PB), - Dated:- 13-12-2007 - Shri P. K. Das, Member (J) [Order] -1. .....

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..... fication clearly stipulates penal consequences and therefore, Section 80 of Finance Act, 1994 cannot be invoked. 3. Ld. Advocate on behalf of the respondent submits that the tax liability is in dispute and the Tribunal referred the matter to the Larger Bench in the case of Agauta Sugar Chemicals Ors. v. CCE, Noida reported in 2007 (8) S.T.R. 496 (T) = 2007(82) RLT 1015 (CESTAT-Del.). H .....

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..... ition that when there is a dispute of interpretation of provision of law, the penal provisions cannot be invoked. Therefore, the Commissioner (Appeals) rightly set aside the penalty. Regarding the payment of interest, the Notification No. 4/03-S.T. (supra) provides the assessee shall pay the tax and return within a period of six months from 14-5-2003 failing which the interest and penal consequenc .....

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