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2015 (8) TMI 796 - CESTAT NEW DELHIPenalty u/s 77 & 78 - assessee neither obtained registration for providing taxable services during the initial period nor remitted the service tax on commercial or industrial construction service and w.e.f. 01.06.2007 on works contract service - Held that:- assessee had provided the taxable services of CICS or WCS during 2006-2007 to 2010-2011 but failed to obtain registration and remit any service tax, till 10.03.2010 - The remittances should be considered in the context of the fact that the assessee obtained registration for rendition of CICS on 26.06.2009 and for WCS on 30.03.2010. Clearly therefore and certainly from 26.03.2009, the appellant must be presumed to have knowledge of being the provider of taxable services liable to remit service tax on the consideration received therefor. The failure of the assessee to remit service tax even immediately after obtaining service tax registration for CICS on 26.03.2009 therefore leads to the clear presumption of conscious knowledge of the liability to tax and of the failure to remit the tax with an intent to evade the same, in violation of the provisions of the Act. Even prior to 26.03.2009, on a plain reading of the provisions of Section 65(25b) of the Act the assessee cannot claim to have been under any doubt as to having provided the specified taxable service. The unambiguous provisions of Section 65(25b); the fact of the assessee having obtained registration for rendition of CICS on 26.06.2009 but failing to remit any tax till 10.03.2009 and that too in instalments and at the assessee's own convenience, without any justification pleaded for failure to remit the service tax and interest due immediately after 26.06.2009, leads to but one inference, namely that the assessee had consciously failed to obtain registration, file returns or remit the service tax due. - in view of the provisions of sub-section (4) imposition of penalties under Sections 77 and 78 cannot be avoided. The impugned order passed by the Commissioner (Appeals) is therefore unsustainable. - Decided in favour of Revenue.
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