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of <h1>Commissioner upholds tax penalties for repeated defaults; appeal dismissed for abuse of legal processes.</h1> <h3>Gora Mal Hari Ram Ltd. Versus Commissioner of Service Tax, New Delhi</h3> The Commissioner (Appeals) confirmed the adjudication order due to the appellant's repeated defaults in tax liability discharge and imposed penalties for ... Penalty - appellant did not come forward to pay service tax, penalty and interest are bound to follow – Held that: - case does not call for consideration of waiver of penalty Issues:1. Abuse of law in seeking appeal against a small service tax demand and penalty.2. Non-compliance with deposit requirements leading to dismissal of appeal.3. Dispute over interest payment and penalty waiver.4. Confirmation of adjudication order by Commissioner (Appeals) due to default in tax liability discharge.Analysis:1. The appellant, represented by a consultant, sought an adjournment due to alleged illness, but it was noted that the appeal was against a minimal service tax demand of Rs. 1,081 and a penalty of Rs. 12,121. The Adjudicating Authority dropped a substantial tax demand of Rs. 12,48,394 and education cess of Rs. 24,971. Despite paying Rs. 881 before adjudication, the appellant faced interest of Rs. 1,281 for delayed payment of dues.2. The appellant's failure to comply with the deposit requirement led to the dismissal of the appeal initially. However, after later compliance and a restoration application, the appeal was reinstated for consideration to prevent further misuse of legal processes.3. The Revenue argued that the appellant's conduct, including delayed interest payments, did not warrant leniency for penalty waiver. The interest amount was paid in two installments, with Rs. 881 paid before the adjudication order and Rs. 200 paid following a Tribunal direction.4. The Commissioner (Appeals) upheld the adjudication order, emphasizing the appellant's repeated defaults in discharging tax liabilities and imposing penalties for non-payment from January to September 2005. The appellant's failure to provide a reasonable cause under section 80 of the Finance Act, 1994, led to the denial of penalty waiver. The judgment concluded that the case constituted an abuse of legal processes, warranting no interference with the Commissioner's decision, resulting in the dismissal of the appeal.
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