TMI Blog2005 (6) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... no such explanation. A plea of financial hardships cannot, by itself, be a satisfactory cause of delayed payment of service tax. Otherwise, every assessee can escape penal liability u/s 76 of the Finance Act, 1994. It needs to be mentioned that financial difficulty is not a circumstance beyond one's control. It is something, for which remedies are available in the commercial world. What Section 80 envisages is a cause or reason (for delayed payment of service tax) which is beyond the assessee's control and could be brought home to a quasi judicial authority to its satisfaction. In the present case, no such circumstance is obtaining and, therefore, Section 80 would not come to the rescue of the assessee. The question now is what sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first appellate authority upheld the decision taken by the lower authority with regard to the penal liabilities of the assessee, but reduced the quantum of penalty under Section 76 to Rs. One lakh. The assessee is still aggrieved. Hence the present appeal. 2. Ld. Counsel for the appellants submits that as the tax was paid with interest prior to issuance of show cause notice any penalty was not imposable on them under Section 76 or under Section 77 of the Finance Act. It is submitted that the delay of payment of tax and that of filing of returns were satisfactorily explained by the assessee, but such explanation was ignored. According to ld. Counsel the benefit of Section 80 of the Finance Act, 1994 was available to the assessee in the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it is the appellant's contention that their explanation of the delay was not considered. What appears from the Order-in-Original is that their explanation was considered. The only explanation offered by the party is that they had financial difficulties and hence happened to pay tax belatedly. As regards non-filing of returns, they can have no such explanation. A plea of financial hardships cannot, by itself, be a satisfactory cause of delayed payment of service tax. Otherwise, every assessee can escape penal liability under Section 76 of the Finance Act, 1994. It needs to be mentioned that financial difficulty is not a circumstance beyond one's control. It is something, for which remedies are available in the commercial world. Wha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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