9911796707
TMI Blog2015 (6) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... ered, they neither discharged the service tax liability nor filed any return. 3. On the basis of audit conducted, the said lapse on the part of the assessee was noticed. The appellant took a stand that service tax was not being paid by them on account of financial problems and non-availability of sufficient funds. However, they immediately paid the service tax of Rs. 2,98,988/- along with interest. 4. While adjudicating the show-cause notice issued to the appellants, the original adjudicating authority took note of the said fact of payment of service tax along with interest and observed "since the amounts have already been paid before the issue of the show-cause notice and appropriation of the same, I consider immunity under section 80 ib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner (Appeals), I find that the Assistant Commissioner has simpliciter extended the benefit of Section 80 of the Finance Act 1994 without assigning any reasons. The said section is applicable where the non-payment of service tax is on account of bonafide belief being entertained by the assessee that the same is not payable. In the present case, the appellants have taken registration on 15.06.2006 and as such were aware of their liability to discharge service tax, on reverse charge basis, in respect of GTA services so received by them. In spite of that the appellant neither paid the service tax for the entire period from 2006 onwards till 2009 nor filed any ST-3 returns assessing their liability to service tax. The said fact came to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e part of the appellants to deposit the tax. The appellants got himself registered in November 96 and, as such, was aware of the fact that advertising agency is liable to pay service tax. The scope of Section 80 relied upon by the ld. CA cannot be extended, so as to cover the fact of financial difficulties being faced by the assessee, to be made the basis for not imposing any penalty. As such, I am of the view that the authorities below have rightly invoked penal provisions against the appellants. The total service tax deposited late by the appellants is to the tune of Rs. 1,36,00,000/- (approximately). As such penalty of Rs. 2.66 lakhs (approximately) cannot be said to be on a higher side requiring any interference by the Tribunal. The app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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