9911796707
TMI Blog2010 (1) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... f the amounts collected in any calendar month from their clients for banking services, on or before the 25th day of the next month. A copy of the circular in Marathi is available on record and the same has been translated to English by the counsel for the appellant. in terms of the above circular, the appellant was paying service tax for the period September 2004 to March 2007. It appears, the appellant failed to take note of the amendment to Rule 6 of the Service Tax Rules, 1994, which came into force on 1-4-2005. The following sub-rule was substituted for sub-rule (1) of Rule 6: "(1) The service tax shall be paid to the credit of the Central Government by the 5th of the month immediately following the calendar month in which the payments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rescribed time limit. In this letter, the Superintendent directed the party to pay interest amounting to Rs. 4883/- on service tax belatedly paid within seven days "failing which the penalty is liable to be imposed @ Rs. 200/- per day for every day for failure to pay service tax after due dates. " The appellant paid the above amount of interest within the time stipulated by the Superintendent. Therefore, there can be no penalty on the appellant under Section 76 of the Finance Act, 1994 on the ground of delayed payment of service tax for the period September 2004 to September 2006. The appellant has also submitted that they got themselves registered with the department on 30-11-2004 in terms of the apex bank's circular dated 23-10-2004. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot plead ignorance of law. In this connection, he has relied on the Hon'ble High Court's judgment in Assistant Commissioner of Central Excise v. Krishna Poduval 2006 (1) S.T.R. 185 (Ker.) The learned Single Judge of the High Court had vacated penalty imposed under Section 76. The Division Bench of the Court has set aside the order of the learned Single Judge, restoring the above penalty to the assessee. The learned SDR has also claimed support from the Tribunal's decision in Mett Macdonald Ltd. v. Commissioner of Central Excise, Jaipur -2006 (2) S.T.R. 524 (Tri.-Del.) = 2001 (134) E.L.T. 799 (Tri. - Del.), wherein it was held that penalties under Sections 76 and 77 of the Act had been rightly imposed on the assessee on account o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it obligatory for the assessee to pay service tax for every calendar month by the 5th of the next month. For the period after amendment of the rule, there is no circular of the apex bank. For this period, the appellant cannot raise the plea of bona fide belief. Once registered with the department for payment of service tax, they are expected to be aware of the relevant provisions of law. Had the appellant acted in terms of Rule 6(1), as amended with effect from 1-4-2005, they would not have defaulted monthly payments of service tax. In this scenario, I am of the view that, for the period April 2005 to March 2007, the benefit of Section 80 of the Finance Act, 1994 is not admissible to the appellant. In other words, the decision of the lower ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
