9911796707
TMI Blog2018 (8) TMI 1681X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Madras Cements Ltd, etc. On the basis of the intelligence gathered that they are not discharging the service tax liability, the Officers visited the premises of the appellant on 28/1/2009 and verified records. It was noticed that appellants had short paid service tax. Show Cause Notice dt.2/3/2010 was issued proposing to demand service tax alongwith interest and for imposing penalties for the period 2007-08 and 2008-09. After due process of law, the original authority confirmed the demand of Rs. 1,05,09,057/- alongwith interest, and appropriated an amount of Rs. 1,00,89,307/- already paid by the appellants and imposed penalty of Rs. 1,05,09,057 u/s.78 of the Finance Act, 1994, besides penalty u/s.77 of the Finance Act, 1994. The order al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents. The sudden termination of their contract with M/s.Madras Cements Ltd., put them in a more worst condition. All these resulted in the business turning non-economical, which was the reason for delay in payment of service tax. However, the appellant had paid the service tax alongwith interest on different dates on their own volition during the first and second quarter of 2007. In the third quarter, they had remitted a part amount of service tax liability. For the remaining period, the service tax liability alongwith interest was paid after the Officers visit on 28/1/2009. A small amount was adjusted on their Cenvat credit. Thus the appellants had discharged the entire service tax liability alongwith interest much before the issuance of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delay in payment of service tax due to financial crisis and when the same has been paid up on being pointed out by the Officers of the department. They have filed two returns for the period 2007-08 on 13/4/2009. Belated returns were filed for the first half of 2008-09 on 21/4/2009 and for the second half was filed on 31/8/2009. They have filed the returns belatedly much before the issuance of show cause notice after paying the late fee of Rs. 8000/-. The entire liability was declared in their ST-3 returns. The delay in payment was due to financial constraints for a short period. The appellant had discharged the liability after selling their movable and immovable properties purchased prior to 2007-08 which would also prove the bonafide of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the person to whom such tax refund has erroneously been made, may pay the amount of such service tax, chargeable or erroneously refunded, on the basis of his own ascertainment thereof, or on the basis of tax ascertained by a Central Excise Officer before service of notice on him under sub-section (1) in respect of such service tax, and inform the Central Excise Officer of such payment in writing, who, on receipt of such information shall not serve any notice under sub-section (1) in respect of the amount so paid". The said sub-section intends to avoid unnecessary litigation when the assessee discharges the service tax alongwith interest. In the present case, the facts reveal that the default was only for a short period. The appellant ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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