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2023 (7) TMI 581 - CESTAT KOLKATAWorks Contract Services - Service Tax registration not taken - service tax not paid - Service Tax Returns not filed - suppression on the part of appellant - extended period of limitation - penalties - HELD THAT:- The Appellant were required to pay Service Tax on certain portion of their operation. The very fact that the Appellant has not contested Rs.4,96,711/- on merits shows that the Appellant had rendered services which were liable for Service Tax as has been observed by the Commissioner (Appeals). Only detailed investigation and verification of the records of the Appellant, the fact of non-payment of Service Tax to the extent of Rs.4,96,711/- has come to light. As a matter of fact, since the Appellant have been providing services even prior to 2007-08, (during 2002 to 2007) the Service Tax liability could not be recovered by the Department as the period was even beyond the extended period of five years. Therefore, it is not a case of mere interpretation or bonafide belief but the case wherein the Appellant did not get themselves registered and did not make disclosure of all their activities to the Department. Extended period of limitation - penalty - HELD THAT:- There are no merits in the submissions made by the Appellant that there is no suppression and hence the extended period could not have been invoked for raising the demand and imposing the penalty under Section 78 - demand and penalty imposed under Section 78, Section 77 (1) (a) and Section 77 (2) are required to be upheld. In respect of penalty of Rs.4,96,711/- imposed under Section 78, it is seen that the Adjudicating Authority and lower Appellate Authority have not given an option of paying the reduced penalty @ 25%, if the Service Tax along with interest is paid within 30 days. Now option given to the Appellant to pay the penalty @ 25% of Rs.4,96,711/-, if they pay the Service Tax of Rs.4,96,711/- along with interest and this re-quantified penalty within 30 days from the date of receipt of this Order. If they fail to fulfill this condition, the penalty under Section 78 will stand at Rs.4,96,711/- - Needless to say that they are also required to pay penalty imposed under Section 77(1)(a) and Section 77(2) as held by the lower Authorities. Appeal disposed off.
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