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Issues: Failure to file ST-3 Return and pay service tax, confirmation of service tax demand, imposition of penalties under Sections 76 and 77 of the Act, liability to pay service tax after registration.
In this case, the appellants, engaged in photography services, failed to file ST-3 Returns or pay service tax for the period from 16-7-2001 to 31-3-2003, despite collecting Rs. 23,10,795/- as service charges. The adjudicating authority confirmed a service tax demand of Rs. 8,38,246/- with interest under Section 75 of the Act and imposed penalties under Sections 76 and 77. The Commissioner upheld the demand with interest but set aside the penalties. The Revenue did not challenge the Commissioner's decision on penalties. The appellants contended that they were not aware their services were subject to service tax, but this argument was rejected as they were registered under the Service Tax Act from 16-7-2001. The Tribunal found no merit in the appeal, upholding the decision due to the appellants' failure to contest their liability to pay service tax post-registration. The appeal was dismissed, affirming the impugned order. This judgment highlights the importance of compliance with service tax obligations once registered, emphasizing that lack of awareness of tax liability is not a valid defense. The Tribunal's decision underscores the need for businesses to stay informed about their tax responsibilities and fulfill them promptly to avoid penalties and legal consequences.
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