TMI Blog2014 (10) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... by the duty date on account of financial crisis can be treated as reasonable cause for the purpose of this Section. This point has been considered by the Tribunal in the case of Ramanasekar Steels Ltd. (2007 (10) TMI 28 - CESTAT, CHENNAI) wherein the Tribunal has held that when the assessee has been declared as sick by BIFR it is a reasonable cause for delay in payment of tax warranting waiver of any penalty under Section 76. Things would have been different had non-payment of tax was due to fraud or with intention to evade the tax, which is not the allegation here. I am, therefore, of the view that ratio of this judgment of the Tribunal is squarely applicable to the facts of the present case. No contrary decision has been pointed out by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for recovery of the Service Tax along with interest and imposition of penalties imposed on them under Sections 76, 77 and 78 of the Finance Act, 1994. The SCN was adjudicated by the Additional Commissioner vide Order-in-Original dated 26-11-2010, by which the above-mentioned Service Tax demand was confirmed along with interest, besides imposition of penalty/fee of ₹ 2000/- each for failure to file ST-3 returns in time was imposed under Section 70 of the Finance Act, 1994 read with Rule 7C of the Service Tax Rules, penalty of ₹ 5000/- under Section 77 of the Act and penalty of ₹ 200/- per day subject to maximum amount of ₹ 6,67,226/- under Section 76 of the Act for failure to pay Service Tax by due date. The above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner (Appeals) and emphasized that merely on account of financial difficulty, penalty imposed under Section 76 for failure in discharging the Service Tax liability by the due date cannot be waived under Section 80 ibid. 5. I have considered the submissions from both the sides and perused the records. Non-payment of Service Tax for six monthly periods ending 30-9-2008 and 30-3-2009 by the due date is not disputed. In any case, the Service Tax amounting to ₹ 6,67,226/- for this period has now been paid. Therefore, so far as the Service Tax demand along with interest is concerned, the same is upheld. Since the delay in filing of ST-3 return by the due date is also not contested the late fee of ₹ 2000/- for each case imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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