TMI Blog2015 (10) TMI 2293X X X X Extracts X X X X X X X X Extracts X X X X ..... her pleads to set aside penalty as appellant is facing financial difficulties – Held That:- After the audit, fact came into light that appellant received service tax amounts from service receiver but same was not being deposited with Revenue – Found no infirmity in imposition of penalty – Decided in favour of Revenue. - Appeal(s) Involved: ST/3183/2011 - Final Order No. 22060 / 2015 - Dated:- 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers / staff salary, fuel and maintenance charges. They have deposited an amount of ₹ 39,27,383/- before issuance of show-cause notice and the balance amount was deposited by them after issue of show-cause notice along with interest. 2. Proceedings were initiated for imposition of penalty under Section 76 of the Finance Act as also under Section 77 of the Finance Act, 1994. The penalty imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or setting aside the penalty. 4. Countering the arguments, learned A.R. submits that admittedly, the appellants have used the exchequer money received by them from their client, for their business and financial gains. Section 76 of the Finance Act fairly provides for imposition of penalty for such delayed payments by the assessee. He strongly relies upon the Kerala High Courts decision in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest should be treated as penal in nature and the penalty imposed under Section 76 cannot be accepted inasmuch as the same would render the provisions of Section 76 as futile and otiose. 6. In view of the clear contravention of law, I find no infirmity in imposition of penalty by the Commissioner, requiring any interference. Accordingly, appeal filed by the appellant is rejected. (Pronounc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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