TMI Blog2016 (5) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... said service tax was required to be deposited by the appellant from their own pocket. Even in that case, the appellant was under obligation to reflect their liability to the Revenue, by taking a registration and filing ST-3 returns. The use of the amount collected by the appellant from their customers in the name of the service tax, instead of depositing the same with the Service Tax Department, clearly reflects upon the malafide intention of the assessee. In such a scenario, the provisions of Section 80 cannot be invoked, in as much as the said section speaks of a reasonable cause, which is bound to be bonafide cause. The fact that service tax was being collected by the appellant from their Customers reflects upon their knowledge that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed by the authorities below confirming the demand of service tax as also imposing penalties. 3. Ld. Advocate appearing for the appellant submits that they are not challenging the confirmation of demand of service tax and, in fact, the same stands paid by them along with interest even prior to the issuance of the show cause notice. The challenge is only to the imposition of penalties. He further submits that it is correct that they were charging and collecting service tax from their clients but the same was not being deposited with the Revenue on account of financial difficulty being faced by them. By drawing our attention to the Provisions of Section 80 of the Finance Act, which provides that if there is a reasonable cause, no penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lected amount only which was required to be deposited. Instead of depositing the same, the appellant have retained it for their own financial gains. We can appreciate financial difficulty to some extent if the said service tax was required to be deposited by the appellant from their own pocket. Even in that case, the appellant was under obligation to reflect their liability to the Revenue, by taking a registration and filing ST-3 returns. The use of the amount collected by the appellant from their customers in the name of the service tax, instead of depositing the same with the Service Tax Department, clearly reflects upon the malafide intention of the assessee. In such a scenario, the provisions of Section 80 cannot be invoked, in as much ..... X X X X Extracts X X X X X X X X Extracts X X X X
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