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2005 (6) TMI 1 - CESTAT CHENNAIPenalty u/s 76 and 77 - waiver of penalty u/s 80 - default of payment of Service tax - HELD THAT:- In the instant case, it is the appellant's contention that their explanation of the delay was not considered. What appears from the Order-in-Original is that their explanation was considered. The only explanation offered by the party is that they had financial difficulties and hence happened to pay tax belatedly. As regards non-filing of returns, they can have no such explanation. A plea of financial hardships cannot, by itself, be a satisfactory cause of delayed payment of service tax. Otherwise, every assessee can escape penal liability u/s 76 of the Finance Act, 1994. It needs to be mentioned that financial difficulty is not a circumstance beyond one's control. It is something, for which remedies are available in the commercial world. What Section 80 envisages is a cause or reason (for delayed payment of service tax) which is beyond the assessee's control and could be brought home to a quasi judicial authority to its satisfaction. In the present case, no such circumstance is obtaining and, therefore, Section 80 would not come to the rescue of the assessee. The question now is what should be the quanta of penalties under Sections 76 & 77. Ld. Commissioner (Appeals) has reduced the penalty u/s 76 to Rs. One lakh, in an apparent exercise of discretion. This Tribunal does not want to sit in judgment over such exercise of discretion. In the result, the penalty of Rs. One lakh will stand affirmed. I am of the view that, in determining the quantum of penalty, regard should be had to the fact that the penalty imposable under this provision for a major part of the period of dispute was Rs. 2,000/- only. Consequently I would limit Section 77 penalty to Rs. 2,000/-. Except in this respect, the impugned order is sustained. The appeal stands disposed of.
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