2025 (1) TMI 347

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..... J. V. Niranjan, Advocate for the Appellant Smt. Anandalakshmi Ganeshram, Authorized Representative for the Respondent ORDER Per : Shri P. Dinesha It is the case of the Appellant - assessee that for the period under dispute, admittedly, they did not discharge the service tax liability and did not file their ST-3 returns in time for the reason that they were having financial constraints and he .....

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..... this regard, they had placed reliance on various judicial pronouncements. In the impugned order, however, the Commissioner has invoked the provisions of Section 73(4) ibid wherein an exception to Section 73(3) ibid has been given and that being so, the appellant having suppressed the fact of receipt, was therefore hit by the said Section 73(4) and hence, the extended period was justified in the c .....

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..... pression of fact does not amount to failure to disclose; a positive act on the part of the assessee is required to justify the invoking of the extended period of limitation and thus, would submit that authority should have refrained from fastening the appellant with penalties. 4. Per contra, Smt. Anandalakshmi Ganeshram, ld. Asst. Commissioner appearing for the Respondent, has supported the Commi .....

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..... returns in time because it had no money or, rather they were under financial constraints due to which, they could also not remit the tax and therefore, they could not fill up the requirements of online filing of the returns, which, according to them was a bona fide reason for on filing of their ST3 returns and pay the tax in time. But, however, the fact remains that even before the issuance of SCN .....

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..... e other than imposing penalties and hence, we are of the view that the SCN is issued only to impose penalty by invoking the larger period of limitation. This is clearly forbidden under Section 73(3) ibid and the case on hand therefore not covered under Section 73(4) ibid. The Commissioner has therefore erred in passing an unsustainable order which deserves to be set aside, which we hereby do. 8. .....

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