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Bharat Sanchar Nigam Limited (Telephone Revenue Unit) Versus Commissioner of Central Excise and Customs, Cochin

2017 (1) TMI 718 - CESTAT BANGALORE

Delay in payment of tax - change in procedure of payment of tax - imposition of interest and penalty - the appellant paid the amount as per the procedure adopted by them as mentioned in their letter dated 04.04.2001, and not as per the procedure which were required to be followed - Held that: - in the case of CCE Pune Vs. SKF India Ltd.[2009 (7) TMI 6 - SUPREME COURT], Honble Supreme Court has held that delay in payment of duty for whatever reasons, attracts interest - the appellant is liable to .....

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003/2017 - Dated:- 2-1-2017 - Shri S. S. Garg, Judicial Member And Shri V. Padmanabhan, Technical Member Shri Raghavendra B Hanjer, Advocate For the Appellant Shri N. Jagdish, AR For the Respondent ORDER Per S. S. Garg The present appeal is directed against the impugned order passed by the Commissioner dated 22.08.2006 vide which the Commissioner imposed the interest as well as penalty for delay in making the payment of service tax. Briefly the facts of the case are that the appellant is a PSU a .....

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f BSNL the special provisions were made. As per the Ministry of Communications letter dated 18.12.2000 addressed to all heads of BSNL circles, in order to avoid delay in payment it was suggested that service tax are paid by the circles to the DOT cells who can directly operate the Central Government account. After corporatisation of BSNL, it lost the status of Government Department and special provisions for payment of service tax and filing returns automatically ceased to exist. Hence BSNL beca .....

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rmed that they have received a letter from their Head Quarters on 12.12.2000 to the effect that service tax collected through Telephone Bills in various Secondary Switching Areas were to be paid by the Circle office to the DOT cell which directly operate on the Central Government Account. It was also informed that in compliance with the said order, payment in respect of service tax collected in the various SSAs in Trivandrum Circle was being made to DOT cell at prescribed intervals who in turn w .....

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ans as required under Section 68 of the said Act read with Rule 6(2) of the Service Tax Rules. But instead paid the said amount as per the procedure adopted by them as mentioned in their letter dated 04.04.2001. They also did not file ST-3 Returns as required under Section 70. Non-compliance of the above requirement is in contravention of the provisions of Sections 69, 68 and 70 rendering the appellant liable to be penalized under Sections 75A, 76 and 77 of the said Act. Thereafter a show-cause .....

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ioner vide the impugned order withdrew the demand of service tax since issue raised in the show-cause notice was purely technical in nature but confirmed the demand of interest of ₹ 42,86,681/- (Rupees Forty Two Lakhs Eighty Six Thousand Six Hundred and Eighty One only) calculated at the appropriate rate for the amount of tax paid belatedly under the provisions of Section 65 of the Finance Act 1994. Further the Commissioner imposed a penalty of ₹ 500/- (Rupees Five Hundred only) unde .....

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es Five Thousand only). Besides this the Commissioner also imposed a penalty of ₹ 14,900/- (Rupees Fourteen Thousand Nine Hundred only) under Section 76 of the Finance Act for not paying the service tax on the due dates itself for the months of October 2000 to September 2001, November 2001 to May 2002, July 2002, April 2003 and July 2003 which is calculated @ ₹ 100/- (Rupees One Hundred only) per day for the period during which the delay caused in remitting the tax to the Government. .....

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e quantification made by the Department is not correct. He further submitted that the appellant was under instruction from the DOT to remit the amount of service tax to DOT cell in Trivandrum every months and who in turn used to remit the consolidated amount received from all circles to the Government Account. He also submitted that from January 2004 onwards the procedure was changed and the circle started remitting the tax directly. During the period up to December 2003 because of the new proce .....

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e) CCE, Jalandhar Vs. General Manager, Telecom 2012 (28) S.T.R. 486 (Tri.-Del.) 4. On the other hand the learned AR defended the impugned order and submitted that there was a delay in depositing service tax amount and also for filing the return and the appellant did not get themselves registered in spite of intimation by the Department. He further submitted that when there is a delay in payment of service tax to the Government, charging of interest is automatic. In support of his submission he .....

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tice of remittance of service tax as per the instructions of the Department of Telecom vide letter No. 3-1/94-III/Vol. III dated 11.12.2000. As per that procedure the amount collected from subscribers on account of service tax had been remitted by the Accounts Officer, PGMT, BSNL, Ernakulam to the Communication Accounts Officer, DOT Cell, Kerala Circle, Thiruvananthapuram twice in a month against service tax major head 0044 towards the service tax amount collected during the previous month. On p .....

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