Service tax penalties for delayed payment and belated returns upheld where defaults were unexplained and tax was paid later with interest.

Penalties under sections 76 and 77 of the service tax law were sustained where the service provider had obtained registration but failed to pay service tax by the due date, later paid the tax with interest, and also filed ST-3 returns belatedly without explanation for either default. On those facts, the Tribunal found no infirmity in the concurrent findings upholding the penalties, and the challenge failed.

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Issues: Whether the penalties imposed under sections 76 and 77 for delayed payment of service tax and belated filing of ST-3 returns were sustainable.

Analysis: The service provider had obtained registration but did not pay service tax for the relevant period by the due date and paid it only later along with interest. The ST-3 returns for the relevant periods were also filed after the due dates, and no explanation was offered for either default. In these circumstances, the Tribunal found no infirmity in the concurrent findings upholding the penalties.

Conclusion: The penalties under sections 76 and 77 were upheld and the challenge failed.

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