Appellant's Late Tax Penalty Reduced to Rs. 25,000 for Broadcasting Service

The appellant challenged a penalty of Rs. 1,49,900 for late service tax payment and filing of ST-3 returns for 'Broadcasting Service'. Despite citing financial crisis and industry-wide issues, the penalty was upheld at Rs. 1,49,800. The appellant's penalty was reduced to Rs. 25,000 due to timely tax payment and interest, but the appeal was otherwise rejected.

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Appellant liable for service tax on "Broadcasting Service" w.e.f. 16-7-2001; registered but delayed tax payment and late filing of ST-3 for July 2001-July 2002. Tax was "subsequently deposited by them on their own without issuance of show cause notice" and interest of Rs. 1,48,579 was also paid before notice. Adjudicating authority imposed personal penalty of Rs. 1,49,800, confirmed on appeal. Appellant claimed financial crisis, industry confusion (advertising agencies disputing liability), and reliance on industry resolution; sought waiver of penalty. Tribunal held that registration put appellant on notice of liability and that financial crisis cannot constitute "reasonable cause" under Section 80 of the Finance Act. Taking overall facts into account-particularly payment of tax and interest before show cause notice-the personal penalty was reduced to Rs. 25,000; appeal otherwise rejected.

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