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Commissioner of Service Tax Mumbai Versus Shlok Media Pvt. Ltd. (Vice-versa)

2016 (8) TMI 1123 - CESTAT MUMBAI

Non fulfilling the obligation to deposit the collected tax to the Government of India - penalty imposed - Held that:- The provisions of Finance Act 1994 and the rules framed therein require deposit of tax by the 5th of the following month. There is no requirement to deposit tax on the date of collection but can be held within the business enterprise till the stipulated date. It would appear that the appellant-assessee had discharged the tax liability belatedly and without waiting for a show caus .....

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service provider to collect the tax due through the service recipient and deposit the amount with the exchequer. However, the law does contemplate and is not averse to use of the tax so collected within the business till the stipulated date for payment. That this period was unilaterally extended by the assessee is not in dispute. Yet, the contention of the assessee that delay is not evidence of intention to evade tax is not one that can be dismissed out of hand. A delay is, without doubt, a dela .....

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OBJECTION NO: ST/CO-74/2011 - A/88881-88883/16/STB - Dated:- 1-8-2016 - Shri M V Ravindran, Member (Judicial) and Shri C J Mathew, Member (Technical) Shri R. K. Das, Dy. Commissioner (AR) for Revenue Shri Kewal Shah, Chartered Accountant for the assessee. ORDER This appeal has been filed against order-in-original no: 13/STC/BR/09-10 dated 12th October 2009 of Commissioner of Service Tax, Mumbai, which confirmed tax demand of ₹ 65,40,206/- and interest of ₹ 6,41,878/- besides imposing .....

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ad been regular in paying service tax on the basis of billings till March 2006 and thereafter on receipt basis. It was claimed that some of their clients had defaulted on payments leading to financial crisis which prevented them from discharging their tax obligations. It is observed that assessee had deposited an amount of ₹ 71,85,266/- towards tax and interest for the period between April 2006 and April 2007. 3. Revenue is also in appeal as penalty imposed under section 76 of the Finance .....

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proviso to section 73(3) estopping issue of notice is applicable as the tax liability was discharged along with interest as early as December 2007. 4. Learned Chartered Accountant appearing for the appellant-assessee contends that the services provided by the appellant is that of 'sale of space for advertising' and not the service invoked in the show cause notice. It is also contended that there has been no willful misstatement on their part. For this proposition reliance was placed on .....

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rned Authorised Representative cited the decision of the Hon ble Supreme Court in Union of India v. Dharmendra Textile Processors [2008 (231) ELT 3 (SC) which held that mandatory penalty in tax statutes cannot be diluted for any reason whatsoever. 6. It is seen that the appellant-assessee claims that they are in the business of display of advertising and hoarding and leasing of hoardings and therefore are not liable tax prior to 1st May 2006 when section 65(105)(zzzm) to incorporate 'sale of .....

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defaulted in their contractual commitments leading to a fund crisis as their own creditors had to be satisfied. It is also their contention that they had obtained a bank loan for meeting the service tax obligation. They, therefore, pleaded for invoking the provisions of section 80 of Finance Act 1994. 7. The allegation of Revenue is that the appellant-assessee had collected tax and not fulfilled its obligation to deposit the same to the Government of India. The provisions of Finance Act 1994 and .....

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