TaxTMI 
TaxTMI 
2009 (3) TMI 296
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....Private Limited, No. 23 & 24, II Floor, Infantry Road, Bangalore - 560001 are the service provider under the taxable category of 'Manpower Recruitment Services & Commercial Training and Coaching Services'. On the basis of intelligence that the appellant is engaged in providing the aforesaid services and collecting Service Tax from the clients, but not depositing the same to the Government Account, the records were called for and verified. Verification of records revealed that the appellant had collected Service Tax amount towards the taxable service provided, but had not paid the Service Tax. During the course of summon proceedings, the appellant inter alia accepted that they did not pay Service Tax since January 2006 due to financial probl....
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....ich may extend to two hundred rupees for everyday during which such failure continues, should not be imposed on them under the provisions of Section 76 of the Act. (vii) Penalty should not be imposed on them under the provisions of Section 77 of the Act, for not filing ST-3 returns to the Department. (viii) Penalty as stipulated under Section 78 of the Act, should not be imposed on them for suppressing the value of taxable service to the Department. 2.2 Appellants resisted the show cause notice to the extent of penalty imposable on them on the ground that they had discharged entire demand of Service Tax and interest before adjudication proceedings. The Adjudicating Authority after considering the submissions made by appellant came ....
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....for everyday during which the failure to make payment continued is imposed the assessee under the provisions of Section 76 of the Act, during the period from July 2003 to 17-4-2006 With effect from 18-4-2006, penalty at the rate of Rs. 200/- for everyday during which the failure to make payment continued or at the rate of 2% of Service Tax per month whichever is higher, shall be applicable as per the amended provisions of Section 76 of the Act, provided that penalty payable in terms of Section 76 of the Act shall not exceed the Service Tax payable. 7. I impose a penalty of Rs. 1,000/- (Rupees One Thousand Only) under the of Section 77 of the Act for their failure to furnish the ST-3 returns in the prescribed manner. 8. Since the asses....
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....e appellant was aware of the law, it was for him to comply with the provisions of law. As regards suppression of facts, it is his submission that the show cause notice was issued within period of one year, hence, there is no need for invokation of extended period. It is his submission that revenue has filed submissions wherein all these points are explained in detail. He would submit that no interference is called for in the impugned order. 5. We have considered the submissions made at length by both sides and perused the records. The undisputed facts are that appellant is liable to discharge the Service Tax on the service of "Manpower Recruitment Services & Commercial Training and Coaching Services". It is also undisputed that they had ....
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....ion, willful misstatement, fraud or collusion with intent to evade payment of Service Tax. Provisions of Section 78 of the Finance Act, 1994 are read. "Section 78 : Penalty for suppressing value of taxable service. - Where any Service Tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, by reason of - (a) fraud; or (b) collusion: (c) willful mis-statement; or (d) suppression of facts; or (e) contravention of any of the provisions of this Chapter or the rules made thereunder with intent to evade payment of Service Tax. The person, liable to pay such Service Tax or erroneous refund, as determined under sub-section (2) of Section 73, shall also be liable to pay a penalty, in addit....