2006 (3) TMI 72 - AT - Service Tax

Delay in filing of return & payment of tax - appellants discharged his service tax liability and interest thereon before SCN - family problems & mis-guided in understanding the law - genuine reason shown for delay - Further the Board vide extraordinary scheme dated 23-9-2004 granted immunity from the penal proceedings - appellant had paid tax liability before the issue of show-cause notice, hence he should be extended the benefit of the Board s scheme from penal provisions

Summary

Issues:
- Appeal against imposition of penalty on the appellant for failure to pay service tax and file returns within due dates.

Analysis:
1. The appellant, a registered service provider, failed to pay service tax and file returns on time, leading to the imposition of a penalty. The appellant later paid the tax liability and interest before the show-cause notice was issued.

2. The appellant claimed that family problems caused the delay in tax payment. The judicial member noted the appellant's small stature and potential lack of understanding of the law, compounded by family issues. The appellant's timely payment before the notice was considered a genuine effort.

3. The Board's scheme provided immunity to those who registered and paid tax before a specified date. Since the appellant paid before the notice, the judicial member deemed it appropriate to extend the scheme's benefits to the appellant, considering the circumstances.

4. After considering the submissions and records, the judicial member set aside the order-in-appeal, allowing the appeal with any consequential relief. The decision was based on the appellant's genuine efforts to rectify the non-compliance before the formal notice was issued.