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TMI Blog2010 (9) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... - ST/157/2010 - WZB/AHD/2010 - Dated:- 24-9-2010 - MR. B.S.V. MURTHY, MEMBER (T) Shri Bharat Shamlani, Chartered Accountant for the Appellant. Shri S.K. Mall, SDR for the Respondent. Per: Mr. B.S.V. Murthy: The appellants are engaged in providing construction services and during the period from October 2006 to March 2007, there was a delay in payment of service tax. On the basis of scrutiny of the returns filed by the appellant, the delay was found and even though the appellants paid the service tax along with interest on subsequent dates, the appellant was found to have paid interest less to the extent of Rs.2,221/-. Thereafter, the show cause notice was issued to the appellant on 22.04.08, proposing to demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,141/- was paid only after issue of show cause notice. For ready reference, Section 73(3) of Finance Act, 1994 is reproduced below: (3) where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the persons chargeable with service tax, or the person to whom such tax refund has erroneously been made may pay the amount of such service tax, chargeable or erroneously refunded on the basis of his own ascertainment thereof, or on the basis of tax ascertained by a Central Excise officer before service of notice on him under sub-section (1) in respect of such service tax, and inform the Central Excise officer of such payment in writing, who, on receipt of such information shall not serve any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant at the time of issue of show cause notice was small, does not really help the appellant. At this stage, I enquired with the learned Chartered Accountant whether he can show reasonable cause for failure to pay the service tax so that a lenient view under Section 80 of Finance Act, 1994, can be taken. He fairly admitted that because of financial difficulty, the service tax was not paid. To a query whether the service tax was collected from the customers, he admitted that the same was collected. Having collected the service tax, and appellant s action in non-payment of the same to the Government, warrants penalty. 6. At this stage, the learned Chartered Accountant drew my attention to the provisions of Section 76 and submitted that in E ..... X X X X Extracts X X X X X X X X Extracts X X X X
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