2013 (5) TMI 591 - AT - Service Tax

Late deposit the service tax - Interest and imposition of penalty - assessee s submission that they are collecting the service tax from their customers and are depositing the same on tentative basis to Revenue there are sometimes shortages and sometimes excess deposits - Held that - As far as interest is concerned, assessee is required to pay the same in terms of the provisions of Section 75 of the Finance Act, 1994 and the same cannot be waived. However, as regards penalty, it is acceptable that there can be no malafide on their behalf for late deposit of service tax, accordingly set aside the imposition of penalties. partly in favour of assessee.

Summary

The Appellate Tribunal CESTAT NEW DELHI confirmed a service tax demand of Rs. 1,82,997 against the appellant, with interest and penalty. The appellant paid the amount late due to adjustments in service tax collection and deposits. The tribunal waived the penalty, noting no malafide intent for the late payment. Appeal partly allowed and partly rejected.