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2023 (2) TMI 440 - AT - Service TaxQuantum of penalty was reduced - Non-payment of service tax - non-filing of returns - HELD THAT - The penalty imposed on the appellant Smt. Usha Mohan, Managing Director of Triumph India Software Services Pvt. Ltd. from Rs. 50,000/- to Rs.10,000/- - Appeal allowed in part.
Issues: Alleged non-payment of service tax liability and failure to file ST-3 Returns by the appellant, imposition of penalties, consideration of claims by the Official Liquidator, responsibility of the Managing Director regarding tax payment and filing returns.
The judgment by the Appellate Tribunal CESTAT Bangalore involved a case where the appellant, engaged in 'Technical Writing and Documentation Services,' was accused of not discharging a service tax liability of Rs.31,23,376/- for the period of April 2013 to March 2014 and failing to file ST-3 Returns during that time. The Managing Director admitted the financial difficulties leading to non-payment of taxes and non-filing of returns. The lower authorities found the allegations sustainable and rejected the appeal of the appellant, M/s. Triumph India Software Services Pvt. Ltd. Another appeal was filed by the Managing Director, where a penalty was imposed and later reduced by the appellate authority. During the appeal process, it was revealed that the appellant, M/s. Triumph India Software Services Pvt. Ltd., had ceased to exist in 2018, and a Resolution Professional, Mr. Venkata Subbarao Kalva, was appointed as the Official Liquidator. The Official Liquidator presented a copy of the order by the National Company Law Tribunal, Bangalore Bench, considering the respondent's claim. The Managing Director, Smt. Usha Mohan, explained the financial difficulties faced by the company during her tenure and clarified her role in the submission of returns and financial activities. After reviewing the case records and submissions by the Official Liquidator, the appeal filed by M/s. Triumph India Software Services Pvt. Ltd. was dismissed. However, considering the liquidation proceedings and circumstances, the penalty imposed on the Managing Director, Smt. Usha Mohan, was reduced from Rs. 50,000/- to Rs. 10,000/-. The appeal filed by the Managing Director was partially allowed by modifying the penalty. In conclusion, Appeal No.ST/20093/2018 was dismissed, and Appeal No.ST/20094/2018 was partially allowed with a reduced penalty. The judgment was pronounced in the Open Court on 10.02.2023 by the Member Judicial, Mr. P. A. Augustian.
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