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TMI Blog2025 (4) TMI 1390X X X X Extracts X X X X X X X X Extracts X X X X ..... decided in the present appeal is whether penalty for failure to appear before the Central Excise Officer when issued with summon for appearance to produce documents in an inquiry is sustainable or not. In this regard, I refer to line no 5 under point no. 5.1.3 of Chapter 5 relating to "SELECTION OF TAXPAYERS FOR AUDIT" OF THE Service tax Audit manual 2011 wherein, it has been categorically specified that:- It is also suggested that the taxpayers whose returns were selected for detailed scrutiny may not be taken up for Audit that year, to avoid duplication of work. The appellant has informed before me and also the adjudicating authority that their detailed scrutiny had been completed in February 2019 and nowhere the claim of the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... documents and finally they were submitted the documents after a delay of 710 days. 2.2 As appellant did not submit the records within a reasonable/stipulated time a show cause notice dated 05.07.2019 was issued to the appellant asking them to show cause as to why penalty should not be imposed upon them under Section 77 (1) of the Finance Act, 1994. 2.3 The said show cause notice was adjudicated as per the Order-in-Original dated 12.02.2020 wherein following has been held:- "ORDER I impose a penalty of Rs. 142000/- (one lakh forty two thousand) only on M/S Bulwarkpro Securities Private Limited, 3/554, Jankipuram Extension, Lucknow-2260217 under Section 77(1) of the Finance Act 1994 read with Section 174 of the CGST Act, 2017." 2.4 A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eunder, or (iii) appear before the Central Excise Officer, when issued with a summon for appearance to give evidence or to produce a document in an inquiry, shall be liable to a penalty which may extend to ten thousand rupees or two hundred rupees for everyday during which such failure continues, whichever is higher, starting with the first day after the due date, till the date of actual compliance;" 4.3 There is no explanation for the delay caused in submission of the records. However, I find that the penalty in the case of delay in submission of document should be a token penalty to insure compliance with the provisions of law. This fact has been admitted in the impugned order, whereby penalty from Rs.200/day has been reduced to Rs.5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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