2018 (7) TMI 1126

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....convenience, the facts of the appeal No.ST/20649/2016 are taken. 2. Briefly the facts of the present case are that the appellant is engaged in providing the services of recovery agent to M/s. ICICI Bank Ltd. Palakkad. Appellant is collecting dues from the borrowers of ICICI Bank Ltd. and to take possession of the assets from the borrowers of the bank. A show-cause notice dt. 23/03/2010 was issued to the appellant demanding interest for delay in payment of service tax under Section 75 and penalty under Section 76 for delay in payment of service tax and education cess payable for the period from May 2006 to March 2008 and also proposed penalty for late filing of ST3 returns and also under Section 78 for suppression of value of taxable serv....

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.... submitted by the appellant. He further submitted that there was only delay in payment of service tax which occurred due to financial crisis and also on account of the fact that the service recipient, M/s. ICICI Bank Ltd., refused to make payment towards service tax in spite of repeated pleas made to them. It is his further submission that the appellant had actually paid an amount of Rs. 3,54,199/- before issue of the first show-cause notice dt. 23/03/2010 and not Rs. 1,19,153/- as mentioned in the order of Commissioner (Appeals). He also submitted that after issue of the first show-cause notice dt. 23/03/2010 for Rs. 6,15,167/- and second show-cause notice dt. 17/06/2010 for Rs. 6,94,202/- but before adjudication on 31/05/2011, appellant p....

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....tion, the appellant started paying service tax and the departmental officer called for details and based on the details furnished by the appellant, show-cause notice was issued alleging suppression and invoking the extended period. Further the Department has also invoked suppression even for the second show-cause notice dt. 17/06/2010. The appellant has submitted that there was delay in payment of service tax because the service recipient refused to make payment towards service tax in spite of repeated demand. Further the apex court in the case of Hindustan Steel Ltd. has held that the direction to impose a penalty must be exercised judiciously. A penalty will ordinarily be imposed in cases where the party acts deliberately in defiance of l....