2009 (3) TMI 83

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..... rtered Accountant for the appellants. Dr. Y.D. Banga, Authorized Representative (SDR) for the respondent. [Order] - After examining the records and hearing both sides, I find that, in a show-cause notice dated 09/10/2003, the Assistant Commissioner had proposed to impose penalties on the assessee under Sections 75A, 76, 77 and 78 of the Finance Act, 1994, respectively, for their failure to apply .....

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..... mmissioner, as revisional authority, issued a show-cause notice under Section 84 to the assessee seeking to review the Assistant Commissioner's decision in relation to Section 76 and to impose a penalty on them under the said Section. This proposal was contested by the assessee. In adjudication, the Commissioner imposed a penalty of Rs. 24,256/- (equal to service tax) on the assessee under Sec .....

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..... gistered with the Department for payment of service tax in the category of "Health and Fitness Services". However, his order mentioned "Health Club and Fitness Centre", and, that too, without any corrigendum to the show-cause notice. His order also was silent about the discrepancy. The revisional authority also mentioned "Health Club and Fitness Centre" in its show-cause notice and order. In the p .....

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..... Insofar as Section 76 is concerned, what is relevant is the appellants' failure to pay service tax within the period prescribed under the Service Tax Rules. The case of the appellants is that he was ignorant of service tax liability at the material time. Ignorance of law cannot be accepted as a reasonable cause for failure to pay service tax. Any tax is a compulsory levy and, therefore, a new .....

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..... -cause notice issued by the Assistant Commissioner. That show-cause notice had proposed penalty under Section 76 also. 6. In the result, I hold that the appellant is not entitled to the benefit of Section 80 of the Finance Act, 1994, and, therefore, they are liable to pay the penalty imposed on them by the Commissioner. 7. The appeal is dismissed. (Dictated in Court)
Case laws, Decisions, J .....

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