TaxTMI 
TaxTMI 
2023 (7) TMI 302
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.... under the category of Goods Transport Agency Service. Due to financial stringency the appellants could not deposit the service tax due for the period from April 05 to March, 07 in time and they were to file the Service Tax Returns in ST-3 after depositing the service tax due. 2. The appellants deposited their Service Tax dues for the period from January, 2005 to March, 2005 amounting to Rs.2,75,154/- towards service tax, Rs.5,272/- as Ed. Cess and Rs.6,269/- towards interest on 27.06.2005 vide their TR-6 Challan dated 23.06.2005. The default in payment of service tax happened between the period April 2005 to September 2007. 3. A Show Cause Notice was issued by the Director General of Central Excise Intelligence to the Appellant alleging ....
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....ith Rule, 4 of the Service Tax Rules, 1994. The Appellant had voluntarily deposited the Service Tax dues for the period from January, 2005 to March, 2005 along with interest in discharge of their Service Tax liability without suppressing any material facts to the department. The delay in payment of Service Tax for the subsequent periods i.e. from April 2005 to September 2007 was due to non release of Transport Subsidies from the Central Government which was beyond the control of the appellant and due to the delay in disbursement of the Transport Subsidy, the financial position of the Appellant deteriorated drastically causing delay in payment of Service Tax in time. Under these circumstances, the Appellant had a reasonable ground for the de....
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....f omission in payment of service tax or procedural lapses by any person liable to pay service tax on goods transport by road committed before 31st December 2005, the consequences should be limited to recovery of tax with interest payable thereon. No penalty should be imposed on such defaulters unless the default is on account of deliberate fraud, collusion, suppression of facts or willful misstatement or contravention of the provisions of service tax with intent to evade payment of service tax." In the present case, the department has not brought in any corroborative evidence to substantiate their allegation of suppression of facts, misstatement etc.on the part of the Appellant to evade payment of service tax. The imposition of penalty is a....
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....ion Order dated 31.03.2010 and imposed penalty. The Appellant is contesting this penalty. 10. We observe that there was a delay in payment of service tax by the Appellant for the period April 2005 to September 2007. They were paying service tax before that period and filed returns.. The Appellant attributed delay in receipt of transport subsidy from the Government as the reason for the delay in payment of service tax. We observe that the Revisionary authority has not given any finding to reject the reason stated by the Appellant for the delay in payment of service tax. Immediately on receipt of the transport subsidy from the Government they have paid the service tax along with interest. We observe that this is a fit case for not issuing sh....