TaxTMI 
TaxTMI 
2023 (2) TMI 897
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....s. The accounts / records of the assessee were taken up for audit by the Internal Audit of the Service Tax Commissionerate, Chennai, during which it was noticed that the assessee had rendered the services of manpower recruitment agency and realized an amount of Rs.4,90,79,293/- for the period from April 2009 to January 2010 but did not pay the service tax of Rs.50,55,167/- collected from their customers. It was also noticed that the appellant did not file ST-3 Returns for the half-year ending 30.9.2009. They had also paid service tax belatedly for the year 2008 - 2009 with interest but there was a short-payment of Rs.12,059/-. Hence Show Cause Notice was issued to the appellant and after due process, the amount was confirmed in the im....
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....th imposition of penalty is justified. 6. We find that the appellant is not contesting the demand for tax and interest but is only aggrieved by imposition of fine and penalty. The fact that the appellant has collected Service tax from the recipients of service but not having deposited it into the government exchequer is not contested by them. They are pleading financial hardship for not paying the tax when due and are pleading for the benefit of not being penalised, for having subsequently paid the tax along with interest before the issue of show cause notice. In the case of indirect taxes, it is the duty of the assessee to collect the tax from the buyer of goods/ recipient of service and deposit the same to the government exchequer within....
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.... deemed to have been concluded, depends on the facts and circumstances of each individual case. They have cited both circular and F No 137/167/2006-C.Ex dated 03/10/2007 and certain judgements in furtherance of their plea. It is seen that the circular dated 03/10/2007 clearly states that section 73(1A) of the Finance Act, 1994 provides for conclusion of adjudication proceedings in the case of wilful suppression/fraud/collusion if the taxpayer pays service tax liability along with interest if the tax payer pays service tax liability along with interest and a penalty equal to 25% of service tax amount within a period of one month from the date of issue of show cause notice. In the instant case where suppression of facts has been alleged in th....