2011 (8) TMI 168

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.... Demand of service tax of Rs.4,77,196/- covering the period 2003-04 to 2006-07 under the proviso to Section 73 (2) of the Finance Act, 1994 along with interest has been confirmed by the authorities below and penalty of Rs.4,84,578/- has been imposed under Section 78 ibid and a penalty of Rs.5000/- under Section 77 (1) (a) ibid. The demand arises as a result of difference between the figures shown....

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....ovision set out herein above and further if entire amount had been realized, there would not be any sundry debtors, while in the present there are sundry debtors to the assessees. This argument advanced, based upon the statutory provisions of Companies Act, was not placed before the authorities. Since it is a statutory provision which is being relied upon by the assessee to support his contention,....

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....nder Section 77 (1) (a) of the Finance Act, 1994. As regards penalty under Section 78, I note that the adjudicating authority (whose order has been upheld by the lower appellate authority) has extended the shelter under Section 80 of the Finance Act, 1994 in order to drop proceedings for penalty under Section 76. In other words, he has held that there is reasonable cause for the failure to pay tax....