2018 (8) TMI 1233 - HC - Service Tax

Penalty for failure to timely depositing the service tax on the professional services - delay due to ill-health of the mother of the assessee s partner, which was not considered as reasonable cause by the Tribunal - Held that - As to in what circumstances such family reasons will be reasonable cause or not would depend upon the facts of each case and therefore, unless the relevant details are discussed, the Tribunal could not have brushed aside these reasons by one liner, especially when the Division Bench decision of the Tribunal in almost similar circumstances on account of cancer of the father of the proprietor of the service provider firm, the Division Bench set aside the penalty in the aforesaid case of Raj Kumar Ora 2009 (2) TMI 36 - CESTAT, NEW DELHI - the matter deserves to be reconsidered by the Tribunal in the facts and circumstances of the case - appeal allowed by way of remand.

Summary

Issues:
Appeal against penalty for failure to deposit service tax on time.

Analysis:
The case involved an appeal by a partnership firm, Assessee-M/s.Archi Technics, against a penalty imposed for not timely depositing service tax on professional services provided during a specific period. The learned CESTAT had dismissed the appeal, upholding the penalty. The Tribunal cited a previous case to support its decision, stating that reasons like the ill-health of a family member cannot justify waiving the penalty under Section 80 of the Finance Act, 1994.

The appellant's counsel argued that a different Division Bench decision had waived a similar penalty due to family reasons, but this was not considered in the present case. The High Court noted that the Tribunal did not provide sufficient reasoning for rejecting the appellant's claims, especially since a similar case involving family illness had resulted in the penalty being set aside previously. The High Court emphasized the importance of consistency in decision-making and directed the Tribunal to reconsider the matter based on the specific circumstances and details of the case.

In conclusion, the High Court allowed the appeal, setting aside the Tribunal's order and remitting the case for fresh consideration. The parties were instructed to appear before the Tribunal without further notice. No costs were awarded in the judgment.