TMI Blog2010 (3) TMI 919X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Commissionerate, Chennai revealed huge variation between the income shown under the heading Developing Printing in the Balance Sheet and the taxable values shown in the ST-3 returns submitted by the appellant to the Department for the relevant periods. It appeared that the appellant had failed to remit the appropriate service tax on the gross amount charged/collected from their clients and also not properly paid the Service tax so collected from their clients to Government account resulting in short payment of Service tax. Since it appeared that the appellant had suppressed the taxable value in their ST-3 half-yearly returns and thereby contravened the provisions of Section 70 of the Finance Act, 1994 read with Rule 7 of the Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal against the same impugned order bearing Appeal No. ST/284/2009 on the ground that the appellant-assessees are not entitled to Notification No. 12/2003-S.T., dated 20-6-2003 and that the dropping of penalty imposed under Section 76 is not correct, legal and proper. 3. Smt. L. Maithili, learned Counsel appearing for the appellant-assessees seek total waiver of the pre-deposit on the ground that Section 11D does not apply in respect of the appellants when the value of goods and materials fall outside the scope of Service tax. In this respect she cites the decision of the Tribunal in the case of S.A.I.L. Bansal Service Centre Ltd. v. CCE, Ranchi - 2009 (15) S.T.R. 640 (Tribunal) = 2007 (220) E.L.T. 520 and Bikash Industries v. CCE, Ja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nexposed colour films, ink etc. used in providing such photography service. Undisputedly, they have collected the Service tax on the gross value of the service provided by them to their customers. Upto 30-6-2003, they paid the Service tax on such gross value. During the period, July, 2003 to September, 2004, they claimed exemption under Notification No. 12/2003-S.T., dated 20-6-2003 and they have collected the full amount of Service tax on the gross value of services provided from their customers but they have deposited with the Department lesser amount claiming the same to be representing tax on the value of service excluding the value of material used. After the impugned period, they have again started paying tax on the gross value. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Bikash Industries (supra) have no application because in those cases no tax was payable by the appellants whereas the present appellant-assessees are clearly required to pay Service tax, only the amount to be paid is in dispute. 7. As regards the limitation of time, we find that the original authority has returned a finding as follows :- Regarding the contention that there is no suppression nor any specific allegation of suppression in the Show Cause Notice and hence the extended period cannot be invoked, it is seen that this is not a mere case of short-payment on account of some ignorance. They were collecting the full amount of Service tax due from their customers but paying a lesser amount to Government claiming an ineligible ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above amply justifies application of longer period of time. No financial difficulty has been pleaded on behalf of the appellant-assessee nor has any documentary evidence demonstrating financial difficulty been adduced before us. In any case, since the appellant-assessee have collected from the public service tax amount on the gross value charged by them but have only remitted part of it to the Exchequer, they have retained the differential amount with them. The balance of convenience will lie ordering the appellant-assessee in such a circumstance to pre-deposit the entire amount, of differential tax amount retained by them so far, as pre-deposit as such direction can cause no undue hardship. Apart from that, as found above, they do not hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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