2010 (4) TMI 200

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..... he period February to October 2007, is challenged by the assessees, on the ground that they had reasonable cause for delay namely, (i) non-availability of funds on due dates; (ii) shortage of funds due to TDS and (iii) change of staff dealing with service tax. Held that- The shortage of funds due to deduction of TDS or change of staff are not justifiable ground for the simple reason that Service t .....

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..... age of funds due to TDS and (iii) change of staff dealing with service tax. 2. I have heard both sides. I find that none of the reasons put forth by the assessees for delay in payment of service tax has reasonable cause so as to extend to them the shelter under Section 80 of the Finance Act, 1994. The Commissioner has given detailed finding in para 7.3 of the impugned order for rejecting the subm .....

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..... payments are received. But in the instant case though the value of taxable service and Service Tax have been realized from the clients, the assessee instead of remitting the service tax due, utilised the amount towards their day to day business purpose. Service Tax amount collected cannot be allowed to be used to tide over the financial crisis of the company. This IS neither permissible nor approp .....

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