9911796707
|
Home
Issues:
Question of penalty under Section 76 of the Finance Act, 1994 for delayed payment of service tax. Analysis: The judgment dealt with the issue of whether a penalty is liable to be imposed under Section 76 of the Finance Act, 1994 on the ground of delay in payment of service tax. The assessee had paid the service tax with interest before the issuance of the show-cause notice. The Authorised Representative of the assessee requested waiver of pre-deposit and stay of recovery regarding the penalty imposed by the original and appellate authorities. The learned DR argued that payment before the notice does not avoid the penalty, citing judgments from the Supreme Court. However, the tribunal noted that the case law cited by the DR related to a penalty under a different act and was not directly applicable to the present case under Section 76 of the Finance Act, 1994. The tribunal analyzed that Section 76 of the Finance Act, 1994, which provides for a penalty on delayed payment of service tax, is not comparable to the penalty under Section 11AC of the Central Excise Act. Section 11AC deals with penalties for defaulters of Central Excise duty due to fraud, suppression of facts, or contravention of provisions with intent to evade payment. The tribunal found that the case law cited by the DR was not applicable to the facts of the current case. Consequently, the tribunal ordered the waiver of pre-deposit and stay of recovery in respect of the penalty imposed on the appellants for delayed payment of service tax. In conclusion, the tribunal ruled in favor of the assessee, granting waiver of pre-deposit and stay of recovery concerning the penalty imposed under Section 76 of the Finance Act, 1994. The judgment clarified the distinction between penalties under different acts and emphasized the specific provisions of Section 76 in relation to delayed payment of service tax.
|
