2007 (4) TMI 251 - AT - Service Tax

Authorized service station - delays in depositing tax during period October 2002 to March, 2005 - appellant submits that the tax could not deposited in time on account of financial crunch being felt by them and on account of accident of the Managing Director - no justification on merits in the above plea - admittedly, services were being provided in spite of the Director s accident - when all other professional activities were being undertaken smoothly during the illness of the Director, why the tax was not deposited appellants is directed to deposit 50% of the penalties imposed

Summary

The judgment by Appellate Tribunal CESTAT AHMEDABAD in 2007 (4) TMI 251 involved a case where a service provider failed to deposit service tax on time due to financial difficulties and the managing director's accident. The tribunal found no merit in the plea and imposed penalties under Sections 76 and 77 of the Finance Act, 1994. The appellant was directed to deposit 50% of the penalties within four weeks for final disposal of the appeal.