2018 (11) TMI 1150

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.... not deposited the same to the Government for the periods from 2006-07 to 2008-09 (up to December, 2008). Show Cause Notice was issued proposing to demand service tax along with interest and also for imposing penalties. After due process of law, the Original Authority confirmed the demand of Rs. 4,15,70,262/- along with interest and imposed penalty of Rs. 5,000/- under Section 77 and penalty equal to the tax demand under Section 78 of the Finance Act, 1994. Aggrieved, the appellant has filed Appeal No. 280/2011. 2. For the subsequent period, a separate Show Cause Notice was issued and after adjudication, Order-in-Original dated 28.01.2011 was passed wherein the Commissioner confirmed the service tax to the tune of Rs. 1,40,64,132/- along w....

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....itarian grounds only to feed their workers. With much effort, they have raised the amount and paid a substantial part before passing of the adjudication Order. 3.3 It is also argued by them that there is no iota of evidence to show that appellants have suppressed facts with intention to evade payment of service tax for the reason that the demand has been raised on the basis of the figures maintained in the accounts of the appellant. The Department has no case that the appellants have hidden any transactions. The only reason for non-payment was due to lack of funds during the relevant period. 3.4 Ld. Consultant also pointed out that in Appeal No. ST/281/2011, the penalty is imposed under Section 76 of the Act ibid. An amount of Rs. 1,40,64....

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....ellant has submitted that their failure to make the payment was because the appellant was under much financial crisis during the disputed period. Even in the reply to the Show Cause Notice, they have stated that the delay/default was due to severe financial crisis. That they have given priority to the day-to-day expenses including salary, electricity payment, etc., so as to sustain the business. Though they made efforts to raise funds to run the company, it did not materialize due to different reasons. They were also expecting refund from income tax to the tune of Rs. 133 lakhs which also did not fructify during the disputed period due to certain procedural and administrative reasons. Immediately after they got the refund from the Income Ta....

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.... and Service Tax, reiterated the grounds of challenge, we are not inclined to accept the same for the reason that both the adjudicating authority viz., the Commissioner of Customs, Central Excise, and Service Tax, Coimbatore, as well as the final fact finding appellate authority, CESTAT, Madras, have categorically held that the assessee / respondent has discharged a portion of the interest liability prior to the issuance of the Show Cause Notice. 29. Perusal of the material on record discloses that the interest payable on the belated payment of service tax was Rs. 12,63,324/- and that even prior to the issuance of the Show Cause Notice, assessee / respondent paid interest amount of Rs. 5,23,151/-. The remaining amount of Rs. 7,40,163/- ha....