service tax not paid electronically

[MANISH KHANNA]

Penalty is sought to be issued u/s 77 for failure to pay service tax electronically. Could you please give case laws in favour of assessee

Thanks

Manish Khanna

[YAGAY andSUN]

Dear Manish,

You may implore for reduction of penalty on the basis of bona-fide believe for non deposit of service tax electronically. This is the only way out.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[Mahir S]

The only consolation is that the Penalty for above under section 77(1) (d) cannot exceed ten thousand rupees and same is effective from 08.04.2011. Prior it was upto five thousand rupees.

Efforts to reduce/waive the penalty shall only result in more waste of time and money. It is advisable to pay the penalty and close the issue, except if u have any genuine reason with supportive evidence.

AI Summary

Penalty for failure to pay service tax electronically may be reduced if a bona fide belief or genuine reason is shown. Penalty under section 77 arises for failure to pay service tax electronically, subject to a statutory maximum that has been amended; mitigation is available by establishing a bona fide belief or genuine reason for non electronic payment supported by evidence, which may persuade the authority to reduce or remit the penalty.