2007 (5) TMI 238 - AT - Service Tax

Delay in payment of tax failure to file ST returns in time reason given by appellant that payment could not made due to financial constraints - duty becomes payable at the time of realization of the service charges - no valid reason has been shown for not filing the prescribed return within time-limit specified under Rule 7 of the Service Tax Rules - penalties on the appellant are warranted under Section 76 and Section 77

Summary

The Appellate Tribunal CESTAT, Ahmedabad partially allowed the appeal reducing the penalty under Section 76 to Rs. 25,000 and sustaining the penalty of Rs. 5,000 imposed under Section 77. The appellant's claim of financial constraints for non-payment of service tax was not accepted as a valid reason for the delay. The Commissioner (Appeals) set aside the penalty under Section 78.