2010 (8) TMI 199 - AT - Service Tax

Appellant is engaged in providing security services - delay in filing the return - scrutiny of the return also revealed that the assessee was required to pay the service tax - After month-wise details of short payment having been intimated by way of issue of show cause notice the appellants paid the service tax along with interest - no explanation was given for belated filing of service tax return and belated payment of service tax - Held that - assessee was registered more than 6 years back and no explanation has been given by them for delayed filing of return and delayed payment of service tax - penalty is imposable under Section 76 the amount fixed as per the provisions of Section 76 is required to be imposed - Appeal is rejected

Summary

Issues: Delay in filing service tax return and payment, imposition of penalty under Section 76

Issue 1: Delay in filing service tax return and payment

The appellant, engaged in providing security services, filed the S.T.-3 return for the period from October 2006 to March 2007 on 25-5-07, which constituted a delay in filing the return. A scrutiny revealed a shortfall in the service tax payment, with the actual amount paid being less than the required sum. Despite the issuance of a show cause notice detailing the short payment month-wise, the appellants paid the service tax along with interest. The Commissioner (Appeals) noted the absence of an explanation for the delayed filing of the service tax return and payment, emphasizing that the assessee had been registered since 5-12-03.

Issue 2: Imposition of penalty under Section 76

The tribunal, after hearing both sides, observed that the appellant had been registered for over six years without providing any explanation for the delay in filing the return and payment of service tax. Consequently, the tribunal upheld the lower authority's decision that a penalty is imposable under Section 76. The tribunal emphasized that once it is established that a penalty is warranted under Section 76, the prescribed amount must be imposed. Despite the appellant's claim of being a non-profit organization, the tribunal held that no leniency could be granted in light of the legal provisions.

In conclusion, the tribunal rejected the appeal, affirming the imposition of the penalty under Section 76 due to the appellant's failure to provide a satisfactory explanation for the delayed filing of the service tax return and payment. The tribunal's decision underscores the importance of compliance with tax regulations and the consequences of non-adherence to statutory obligations, irrespective of the entity's organizational structure or nature.