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2005 (2) TMI 6 - AT - Service TaxService Tax Delay in payment of service tax as of on account of service tax made error in entries in the half yearly return Penalty not imposable
Issues:
Penalty for delay in payment of service tax. Analysis: The appellant filed an appeal against a penalty of Rs. 7,700 imposed for delayed payment of service tax for the period from September 2000 to March 2001. The appellant was supposed to pay more than Rs. 10,000 as service tax but only paid Rs. 5,124, resulting in a notice for differential tax issued on 12-10-2001, with payment made on 16th January, 2002. The penalty was imposed due to the delay in payment. The appellant argued that an error occurred while entering service charges in December 2000, where the billed amount was mistakenly repeated as the received amount, leading to higher figures in the return. The appellant claimed there was no actual short payment, and the delay was due to a mistake in the return entries, not an attempt to evade tax. The appellant presented office records supporting this claim and had explained the situation to lower authorities as well. The tribunal reviewed the records and found that the short levy demand was based on the appellant's own return for the period in question, with no other evidence indicating receipt suppression. Consequently, the tribunal concluded that the penalty imposition was unjustified. The appeal was allowed, providing consequential relief to the appellant.
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