2019 (3) TMI 417 - AT - Service Tax

Whether for non-payment of service tax within the stipulated time, the appellant is exposed to the penal consequences provided under Section 76 of Finance Act? - Held that - Section 76 of the Act mandates that in case of non-levy, short levy or non-payment or short payment of service tax, penalty at the appropriate rate shall be imposed on the assessee - Admittedly, the service tax liability along with interest had been deposited by the appellant during the course of adjudication proceedings. Thus, the appellant is exposed to penal consequences provided under Section 76 of the Act - appeal dismissed - decided against appellant.

Summary

Issues: Whether the appellant is liable for penalty under Section 76 of the Act for non-payment of service tax within the stipulated time.

The judgment pertains to a case where the appellant, engaged in providing taxable services, did not deposit the service tax collected from clients into the Government exchequer during the disputed period. The lower authorities confirmed the service tax demand, appropriated the deposited amount, and imposed a penalty under Section 76 of the Act. On appeal, the Commissioner (Appeals) upheld the penalty. The appellant challenged this decision before the Tribunal.

The main issue before the Tribunal was whether the appellant could be penalized under Section 76 of the Act for failing to pay the service tax within the specified time. Section 76 mandates penalties for non-payment or short payment of service tax. Despite the appellant depositing the service tax liability with interest during the adjudication proceedings, the Tribunal held that the appellant was still liable for penalties under Section 76. The Tribunal found no fault in the decisions of the lower authorities in confirming the penalty.

The Tribunal noted the appellant's casual approach in pursuing its appeal rights, as evidenced by multiple adjournments and lack of appearance. Due to this, the Tribunal proceeded with the hearing in the presence of the Revenue's representative. The appellant's failure to deposit the service tax collected from clients led to the imposition of penalties under Section 76 of the Act. Consequently, the Tribunal dismissed the appeal, upholding the penalties imposed on the appellant for non-payment of service tax within the stipulated time.

In conclusion, the Tribunal upheld the penalties imposed on the appellant under Section 76 of the Act for failing to pay the service tax within the specified time. The appeal was dismissed, emphasizing the appellant's responsibility to adhere to statutory obligations regarding service tax payments.