2008 (11) TMI 151

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..... ment of tax is problems in recovering their dues from their clients – tax has been paid with interest before adjudication order - Revenue’s view that financial constraints cannot be an excuse for not discharging the service tax liability is agreeable – penalty u/s 78 reduced – penalty u/s 76 dropped – penalty u/s 77 upheld - ST/329/2008 - 1316/2008 - Dated:- 21-11-2008 - Shri T.K. Jayaraman, Me .....

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..... n 84 of the Finance Act had took up the Revisionary Proceedings. Consequently he passed the impugned order. In the impugned order, he has imposed the following penalties: (i) penalty of Rs. 100/- per day under Section 76; (ii) penalty of Rs. 1000/- under Section 77; and (iii) penalty of Rs. 4,56,587/- under Section 78 of the Act. The appellants are highly aggrieved over the impugned order. .....

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..... the duty of them to discharge the service tax liability. They have failed to do it and they cannot come up with the excuses to escape from the penal provisions. She also stated that the financial constraints cannot be a reasonable cause for waiver of penalties. 3. On a careful consideration of the matter, I agree with the Revenue's view that financial constraints cannot be an excuse for not d .....

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