2005 (1) TMI 6 - AT - Service Tax

Service Tax Goods Transport Operator (1) Demand (2) Interest on delayed payment of service tax (3) Assessee failure to furnish ST-3 return (4) Penalty

Summary

Issues: Failure to submit ST-3 Return, levy of interest, imposition of penalty, specific demand of service tax, opportunity of being heard, retrospective validation of service tax, imposition of penalty

In this case, the respondent company, a Goods Transport Operator, failed to submit an ST-3 Return for a specific period as required by the Service Tax Rules. The jurisdictional Deputy Commissioner directed the company to pay service tax, interest, and imposed a penalty. The Commissioner (Appeals) allowed the company's appeal, citing reasons such as the absence of a specific demand for service tax and lack of opportunity to be heard. The Revenue appealed this decision.

Upon hearing both sides, the Tribunal noted that the company accepted liability for paying the service tax and had paid the tax for the relevant period. The Tribunal held that the company was liable to pay interest on the delayed payment of service tax but found no grounds for imposing a penalty. The introduction and subsequent exemption of service tax on Goods Transport Operator Service, along with the retrospective validation of the levy and collection of service tax, were considered. The Tribunal also took into account that the company had obtained a Stay Order against the Service Tax Rules. Consequently, the Tribunal partly allowed the appeal by upholding the interest liability only and rejected the imposition of a penalty. The cross-objection filed by the respondent company was also disposed of accordingly.