2001 (8) TMI 2 - AT - Service Tax

Summary

Issues involved: Appeal against confirmation of Service Tax demand, interest, and penalties under Sections 75 to 77 of the Finance Act, 1994.

Facts and Contentions:
The appellants provided Consulting Engineering Services to the Command Area Development (CAD), Bikaner from 7-7-1997 to 31-3-1999. The Service Tax payable was Rs. 9,11,414, out of which they deposited Rs. 7,11,191. The Department alleged willful suppression of facts to evade service tax and issued a show cause notice. The appellants contested, claiming they received Rs. 7,39,581 from CAD and deposited it on 24-2-1999, denying any suppression. The Commissioner confirmed the demand, interest, and penalties, leading to the appeal.

Appellants' Arguments:
The appellants contended that reimbursible expenses were not allowed as per Circular No. 43/5/97-TRU and denied suppression of facts. They argued against the imposition of penalties under Sections 76, 77, and 78 of the Act.

Revenue's Arguments:
The Revenue supported the Commissioner's order, citing the appellants' failure to deposit service tax on time and alleged suppression of facts regarding services provided to CAD.

Judgment:
The Tribunal noted the appellants' failure to pay the full Service Tax amount and rejected their claim regarding reimbursible expenses. It found no evidence that the appellants disclosed their services to CAD voluntarily, leading to the imposition of penalties under Section 78 for suppression of facts. Penalties under Sections 76 and 77 were also upheld for failure to furnish service tax returns promptly. The Tribunal upheld the Commissioner's order, dismissing the appeal due to lack of merit.