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Issues:
Penalty imposed under Section 76 and Section 77 of the Finance Act, 1994 for delayed payment of service tax. Analysis: The appeal was filed against the penalty imposed on the appellants for delayed payment of service tax for business auxiliary services. The penalty of Rs. 16,136/- under Section 76 and Rs. 1000/- under Section 77 was imposed due to a delay in payment of service tax between April 2006 to January 2007. The appellants had already paid the service tax with interest, and there was no dispute regarding the liability. The absence of the appellants during the proceedings was noted, with only the ld. DR representing the respondent. The penalty was justified by the DR, stating that the delay was due to negligence on the part of the appellants in obtaining details of deductions from the parent company. The Commissioner (Appeals) upheld the penalty, emphasizing that the appellants could have obtained the deduction details along with TDS information, and the delay of over 6 months was not justified. The Tribunal considered the submissions of both parties. The appellants claimed that the delay was unintentional as they could not obtain details of deductions from the parent company on time. However, the Tribunal observed that the appellants had received TDS details well in advance, making the explanation for delay in receiving other deductions invalid. The Tribunal referred to relevant decisions in similar cases and found no reason to interfere with the Commissioner (Appeals) order. The appeal was rejected, and the order was passed in the absence of the appellants, who had not appeared before the Tribunal despite multiple notices. The Tribunal upheld the penalty imposed under Section 76 and Section 77 of the Finance Act, 1994 for the delayed payment of service tax.
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