9911796707
TMI Blog2010 (11) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. JUDGMENT ADARSH KUMAR GOEL, J. 1. This appeal was admitted on 7.2.2005 to consider following question of law:- Whether the penalty imposed equivalent to Service Tax short paid by the party under Section 78 of the Finance Act, 1994 is the maximum statutory limit or the minimum mandatory limit? 2. The assessee is a Security Agency and for the period from 16.10.1998 to 31.3.1999 and 1.4.1999 to 30.9.1999, the assessee filed its return and instead of making payment of service tax on the gross amount charged from the customers, the service tax was paid only on the service charges received by the assessee. Show cause notice was served on the assessee. Thereafte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n furnished exceeds a sum of twenty-five thousand rupees, the Central Excise Officer shall not issue any direction for payment by way of penalty without the previous approval of the Commissioner of Central Excise. 6. He, however, submits that there is no suppression or concealment to evade payment of tax. Reason for non-payment was bonafide dispute about manner of computation of service tax. All facts were duly disclosed in the return. He submits that in these circumstances, quantum of penalty imposed by the Tribunal be not interfered with. 7. The finding recorded in the order-in-original is as under:- In this particular case, the party was fully aware that under the existing law, the duty liability is to be discharged on the gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at is why they could challenge the constitutional validity of the provisions before the High Court. It appears from the record that in the writ petition filed by the assessee before the High Court the challenge is against service tax on components other than services charges. The writ petition was filed in 1999. However, it appears from the records that the assessee in their ST-3 returns furnished only the figures of service charges. It was only later on that the assessee furnished the gross values of service for the purpose of levy of service tax for the relevant periods. It is also pertinent to note that they had with them no order from the High Court enabling them to pay service tax on service charges only during the pendency of the wri ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
