Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 23 - AT - Service TaxPenalty u/s 76 and 77 of FA - non-discharge of service tax liability in spite of having collected the same from the service recipient - huge cash flow problem - immediate payment of tax with interest paid on being pointed out by audit team - ST-returns for half year ending 30.09.2009 on 27.08.2010. However, ST-3 returns for half year ending 31.03.2010 had not been filed - no intent to evade present - Held that:- The identical dispute involving non-discharge of service tax liability in spite of having collected the same from the service recipient had been addressed by CESTAT Chennai in the case of Jeyam Automotive Vs CCE Coimbatore [2018 (11) TMI 1150 - CESTAT CHENNAI] wherein it was held when reasonable cause for the failure to discharge service tax liability was available, and especially there is no evidence to show that that the delay / default was due to any wilful act to evade payment of duty, it is a fit case for invocation of Section 80 of the Act. There is no hesitation in holding that while the demand of tax liability is very much justified, imposition of penalty under Section 76 of the Finance Act, 1994 is not justified since there was reasonable cause for failure of the appellant to discharge tax liability - the penalty imposed under Section 77 ibid is fully justified and no interference is made with the same - appeal allowed in part.
|