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TMI BlogPenalty provisions ...X X X X Extracts X X X X X X X X Extracts X X X X ..... During CERA Audit for the pre GST period, Auditors raised a para regarding deposition of service tax under RCM on Ocean Freight. We were actually unaware of such developments and due to ignorance we didn't comply on deposition of service tax under rcm on goods imported during 2016-17. Once Audit Para was raised by the Audit Team, we deposited the amount along with interest applicable for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period in dispute . Now Department is forcing us to deposit penalty as well @ 15% of service tax. Is penalty provision applicable. Kindly suggest - Reply By KASTURI SETHI - The Reply = Since you have paid due Service Tax along with interest on being pointed out by the Department (Whether pointed out by CERA or Internal Audit of the department, it does not matter), Extract of Section 73 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Finance Act, 1994 (3) Where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person chargeable with the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 notice under sub-section (1) in respect of the amount so paid : CERA also sends audit report to the department of Central Excise Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax. Hence the department stands informed regarding deposit of ST along with interest There is a plethora of case laws in your favour. Penalty is not imposable at all. If more information is required, let me know through this forum. - Reply By Rizwan Ullah - The Reply = Thanx Kasaturi Sir, Department's Audit Team has informed that there are penalty provisions as per Central Excise Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es , Sir, could u please refer some case laws in tghis regard which will help us to file a suitable reply. - Reply By KASTURI SETHI - The Reply = You are mistaken. Neither Central Excise Rules or nor Central Excise Act do not come into play. You have contravened the provisions of Service Tax law ( Finance Act, 1994 ). Service Tax law has its own Sections 77 and 78 for imposition of penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. As per Section 73 of the Finance Act, 1994 the department cannot issue Show Cause Notice for imposition of penalty under Section 77 or 78 as dues Service Tax along with interest stands deposited. - Reply By Rizwan Ullah - The Reply = Thanx ..a lot Sir, - Reply By Rizwan Ullah - The Reply = Kasturi Sir If u could share any case law , it would be very beneficial. - Reply By KAST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... URI SETHI - The Reply = Dear Sh.Razwan Ullah, There are so many case laws in your favour. I am posting a few case laws. (52) S.T.R. 143 (Tri. - Kolkata) = 2017 (9) TMI 261 - CESTAT KOLKATA KALINGA COMMERCIAL CORPN. Versus COMMISSIONER OF C. EX. S.T., BBSR-I 2017 (49) S.T.R. 78 (Tri. - Mumbai) = 2017 (1) TMI 304 - CESTAT MUMBAI UDAYSINGRAO GAIKWAD SSK LTD. Versus COMMISSIONER OF C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . EX., KOLHAPUR 2017 (48) S.T.R. 165 (Tri. - Hyd.) = 2016 (9) TMI 844 - CESTAT HYDERABAD POWER MECH PROJECTS LTD. Versus COMMISSIONER OF CUSTOMS, GUNTUR 2017 (47) S.T.R. 125 (Kar.) = 2011 (8) TMI 1260 - KARNATAKA HIGH COURT COMMR. OF S.T., BANGALORE Versus C AHEAD INFO TECHNOLOGIES INDIA P. LTD. 2016 (46) S.T.R. 623 (Tri. - Mumbai) = 2015 (8) TMI 862 - CESTAT MUMBAI SHIV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NATH HANUMANT KANDI Versus COMMISSIONER OF C. EX., AURANGABAD - Reply By Prudhvi Jakkula - The Reply = Kasturi sir, Hats off for your patience. - Reply By KASTURI SETHI - The Reply = Sh. Prudhvi Jakkula Ji, You are welcome. My mission is to help the public/querists by sharing knowledge so that they may get natural justice. They should not become victim of injustice due to lac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k of knowledge in this field. Nobody has specialization in all the fields. - Penalty provisions ... - Query Started By: - Rizwan Ullah Dated:- 20-6-2019 Service Tax - Got 8 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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