2011 (2) TMI 540

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ahajan, Jt. CDR, for the Respondent. [Order per : P.G. Chacko, Member (J)]. - In this application, the appellant seeks waiver of pre-deposit and stay of recovery in respect of penalties imposed on them, a penalty of Rs. 80 lakhs under Section 78 of the Finance Act, 1994, another penalty of Rs. 1000 under Section 77 of the Finance Act, 1994 and yet another penalty under Section 76 of the Act.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion during the course of the day. He submits that one Mr. Ravi Bhatia, Accountant of the appellant, was entrusted with the job of paying service tax for the aforesaid period but he ran away with the cheques issued by the appellant, without depositing the same with the department. It is submitted that, as soon as the appellant came to know that the tax had not been paid, they voluntarily paid it up....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the department sometime in July 2007 and investigations were launched by DGCEI forthwith. Faced with this situation, the appellant was constrained to pay the amount of service tax with interest thereon in October 2007. It was not a voluntary payment as claimed by the consultant. The appellant also did not file any return during the period of dispute. Section 73(3) of the Act is of no assistance to....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....his argument that the mere fact that service tax with interest was paid before issuance of show-cause notice would not exonerate the appellant from its penal liability. 4. After considering the submissions, we have not found prima facie case for the appellant. The circumstances stated by the consultant have not been substantiated inasmuch as no internal audit report is produced. On the oth....