2007 (4) TMI 250 - AT - Service Tax

Late deposit of Service tax on nine occasions and there were delays in filing of returns advertising services - submission that they had already deposited the Service tax along with interest and, as such, imposition of penalty was not justified penalty u/s 76 abd 77 is already reduced by Commissioner no justifiable reason for further reduction in penalty inasmuch as the appellant being registered service provider, was aware of this liabilities to pay the tax

Summary

The appeal challenges penalties of Rs. 2,000 under Section 77 and Rs. 20,000 under Section 76 of the Finance Act, 1994, for late filing of returns and late deposit of Service tax. The appellant, a registered provider of advertising services, defaulted nine times between December 1996 and September 1999, with delays ranging from 1 to 292 days. Despite depositing the tax with interest, penalties were imposed. The Commissioner reduced penalties, but the Tribunal rejected the appeal, stating the appellant was aware of tax liabilities and provided no justifiable reasons for the delays.