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2013 (6) TMI 80 - AT - Service TaxPenalty - payment of service tax before issuance of show cause notice (SCN) - section 73(3) - held that - Show cause notice was issued to the appellant on 13.03.09 which is undisputed. Since the appellant s only claim before the Tribunal is that he has paid the amount of service tax liability, interest thereof before the issuance of show cause notice, he should get the benefit of Section 73(3), does not stand the test of the law, as it is evident that he has paid the amount only after the issuance of show cause notice. - penalty confirmed - decided against the assessee.
Issues Involved:
Non-discharge of service tax liability within the prescribed time period; Imposition of penalty under Section 76 of the Finance Act, 1994; Applicability of Section 73(3) regarding payment of tax liability before the issuance of show cause notice. Analysis: The appeal was directed against an order related to the appellant's failure to file ST-3 return within the specified time period. The appellant, engaged in providing rent-a-cab operators service, had not filed returns for the period from April 2008 to September 2008 by the prescribed date. The department issued letters directing the appellant to file returns and submit tax particulars. The appellant paid the service tax and interest for the mentioned period in March 2009. A show cause notice was issued, leading to the confirmation of a service tax demand of Rs. 3,31,416/- and interest appropriation. A penalty under Section 76 of the Finance Act, 1994 was imposed. The appellant contested the penalty imposition, arguing that they had paid the tax liability along with interest before the show cause notice issuance, invoking Section 73(3). Both the adjudicating authority and the first appellate authority held that the appellant had not paid before the notice. The appellant, though absent, requested a decision based on the appeal memoranda. The issue revolved around the non-discharge of service tax liability for the specified period despite being a registered unit. The appellant collected but did not deposit the service tax with the authorities. The lower authorities confirmed the delayed payment after the notice was issued, rejecting the appellant's claim of pre-notice payment. Upon review, the tribunal found that the appellant paid the tax liability and interest only after the show cause notice was issued, contradicting the appellant's claim of pre-notice payment. Consequently, the tribunal upheld the lower authorities' orders and dismissed the appellant's appeal.
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