2013 (10) TMI 1156 - AT - Service Tax

Authorised Service Station belated deposit of service tax - Wrong Accounting Heads - Interest and Penalty Waiver of Pre-deposit - Held that - The service tax amount had been deposited by the appellants but by mistake it was deposited in the wrong head and the assessee code was also wrongly mentioned - Similarly, for the period July 2005 to December 2010, the service tax amount pertaining to the period has been deposited by the appellant after the due dates and also service tax returns are filed after the due dates - Prima facie, the appellant does not have a strong case for complete waiver of pre deposit - the appellant was directed to pay the interest amount - there shall be a stay against the recovery of penalty and the late fee amount till the disposal of the appeal partial Stay granted.

Summary

Issues:
1. Stay application for waiver of pre-deposit and recovery of service tax, interest, penalty, and late fee.
2. Incorrect payment of service tax and late filing of returns.
3. Rejection of appeal by C.C.E. (Appeals) and subsequent hearing before the Tribunal.

Analysis:
1. The appellant, M/s. Gurucharan Motors, filed a stay application seeking waiver of pre-deposit and stay of recovery of service tax, interest, penalty, and late fee confirmed by C.C.E. (Appeals). The service tax amounting to Rs.12,634/- for the period from April 2007 to September 2007 was deposited in the wrong accounting head with the assessee code wrongly mentioned. Additionally, service tax for the period from July 2005 to December 2010 was paid after the due dates, and returns were filed late. The Department issued a Show Cause Notice for demanding the service tax, interest, and proposing a penalty. The appeal before C.C.E. (Appeals) was rejected, leading to the Tribunal hearing the case.

2. Upon hearing both sides, the Tribunal found that the service tax amount was indeed deposited by the appellant but in the wrong head and with incorrect details. Similarly, for the period from July 2005 to December 2010, the service tax was paid late, and returns were filed after the due dates. The Tribunal noted that the appellant did not have a strong case for complete waiver of pre-deposit. Consequently, the Tribunal directed the appellant to pay the interest amount of Rs.21,551/- within six weeks. Upon compliance, there would be a stay against the recovery of penalty and late fee until the appeal's disposal, with a compliance report due on 23 August 2013.

3. The Tribunal's decision highlights the importance of correct payment and timely filing of service tax returns. Despite the appellant's deposit of the service tax amount, the errors in accounting and late payments led to the Tribunal's ruling for partial payment of interest and stay against penalty and late fee recovery. This case underscores the significance of adherence to tax regulations and the consequences of inaccuracies in tax compliance, even when payments are made, in the context of seeking relief through the appellate process.