2007 (7) TMI 111

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....at the assessee has failed to pay the Service tax and to file return for the period from October 2000 to December 2001 on or before the stipulated period. A show cause notice was issued on 7-1-2002 for contravention of the provisions under Sec. 68 and Sec. 70 of the Finance Act, 1994 and proposing penalty under Sec. 76 and Sec. 77 ibid. The Assistant Commissioner (Service Tax) Central Excise & Customs, Nasik-IV accordingly adjudicated the matter and imposed penalty of Rs. 4000/- under Sec. 76 and Its. 300/- under Sec. 77. It is relevant here to mention that the assessee has paid Rs. 70,737/- with interest thereon amounting to Rs. 7,300/- before issue of show cause notice for the period pertaining to October 2000 to June 2001. After issue of....

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....Counsel for the appellants contends that earlier the assessee was prompt in payment of Service tax and also in filing returns but during relevant period due to non availability of the funds and due to not receipt of the payments from the major corporate customers the service tax amount could not be paid in time. This ground appears to be the main ground for their failure to pay Service tax. 4. The ld. JDR Shri Jadhav submits that the activity of levying Service tax does arises when the assessee receives the payment of service charges after rendering the services by the service provider. As such the defence put forth by the assessee that the funds were not available and the bills were received late is not a plausible explanation. In short....

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....ty amount as provided under Sec. 80, the ld. Counsel for the appellants submits that non availability of the funds due to non receipt of the amount from the corporate customers is the major cause and this has not been appreciated by both the authorities below for waiving the penalty amount. No other reason could be fit better than what is shown as the defiance in their reply notice for the purpose invoking Sec. 80. Therefore, on appreciation of the above referred circumstances, the appellant also pleads for complete waiver of penalty amount as provided under Sec. 80 on the ground that they have s and shown reasonable cause. The Assistant Commissioner after verifying the bills and vouchers as submitted before him by the assessee or would be ....