Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 1149 - AT - Service TaxPenalties u/s 76, 77 and 78 of FA - Non-payment of Service Tax - appellant had collected service tax but had not remitted the same to the Government Account - no intent to evade - Held that:- In the present case, facts indicate strongly that the non-payment was due to the financial difficulties. It is also brought out that appellant was burdened with payment of wages to the manpower supplied even though delayed amount / no amount was received from airlines. The amounts received from the customers were always less than the amounts to be spent by them and the difference was to be arranged through loan. The secured loans increased from 11.62 crores in April 2008 to 12.46 crores in March 2009 and unsecured loans increased from ₹ 76.67 lakhs to ₹ 97.78 lakhs; that sundry debtors have gone up from 4.43 crores to 7.56 crores during the same period. They furnished documents to establish these facts. The delay / non-payment of service tax cannot be said, is an act of suppression of facts with intent to evade payment of tax. In fact, the demand has been raised on the basis of figures furnished by appellant and department has no allegation of any deliberate act done to evade payment of tax - the ingredients for imposing penalty under section 78 are not attracted. Penalty u/s 76 and 78 set aside - penalty u/s 77 upheld - appeal allowed in part.
|