(1.) By this petition under Article 226 of the Constitution of India the petitioner has challenged an order of the Central Government allowing the revision petition filed by the respondent Commissioner of Customs against the order of Commissioner (Appeals). The Commissioner (Appeals) had set aside the order of the Assistant Commissioner of Customs imposing penalties upon the petitioner on account of delay in deposit of tax collected by the petitioner from passengers as per the provisions of Section 48 of the Finance Act, 1989 and the Indian Air Travel Tax Rules, 1989 (hereinafter referred to as IATT Rules) framed by the Central Government in pursuance of the Act.
(2.) Briefly the facts are that the Finance Act, 1989 introduced a tax on domestic travel by air called the Inland Air Travel Tax. The petitioner being a domestic air carrier was obliged to collect the tax and pay it to the credit of the Central Government. The Central Government also framed Rules in this behalf called the Indian Air Travel Tax Rules. As per Rule 6 the tax collected by the carrier in any month is to be deposited by the carrier in the account of the Central Government within thirty days from the end of the month in which the tax was collected. For the month of June 1995 the petitioner deposited the tax amounting to Rs.26,99,018.00 on 31 August, 1995 whereas the due date of the said deposit as per Rules was 30th July, 1995. Thus, there was a delay of 32 days. The return for the month of June 1995 was also filed belatedly, the delay being nine days. According to the petitioner the delay in deposit of the tax was wholly unintentional, bona fide and without any mens rea. It is further submitted that the petitioner of the own volition deposited interest amounting to Rs.47,325.00 on 7th September, 1995 on account of delayed deposit of tax.
(3.) The petitioner was served with two show cause notices dated 28th August, 1995 by the Assistant Collector of Customs for the delayed deposit of the tax as well as on account of delay in filing the return for the month of June 1995. The show cause notices, amongst other things, called upon the petitioner to show cause why penalty under the provisions of the Act and the Rules be not imposed on account of the delay in deposit of tax collected by the petitioner on behalf of the Government and the delay in filing return with respect thereto. The petitioner was provided with an opportunity of personal hearing on 5th September, 1995 which the petitioner duly availed of. The Assistant Collector of Customs, i.e., respondent No.3 vide order dated 5th February 1996 imposed a penalty of Rs.2,000.00 and a further penalty of Rs.4,500.00 under Rule 8A of the Rules for contravention of Rule 7 for delay of nine days in submitting the return for the month of June 1995. The petitioner was further directed to deposit Rs.47,325.00 by way of interest @ 20% per annum under section 43A(1) of the Act and imposed a further penalty of Rs.5,50,000.00 under section 46(3) of the Act for contravention of Rule 6 of the rules read with Section 42(2) of the Act for delay of 32 days in depositing the tax for the month of June 1995.