TaxTMI 
TaxTMI 
2009 (3) TMI 167
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....'. On verification of the records, it was noticed that the assessee/appellant had been collecting Service Tax from their clients but not remitting the same to the Government Account. The lower authorities after detailed investigations issued a show cause notice to the appellant directing them to show cause as to why : (a) Service Tax amounting to Rs. 81,54,940/- should not be paid by them for the period from 10/2000 to 31-3-2004 under the provisions of Section 73(1) of the Finance Act, 1994. (b) An amount of Rs. 6,19,987/- already paid by them should not be appropriated against the amount payable at Sl. No. (a) above. (c) Interest as applicable for the period, should not be paid by them under the provisions of Section 75 of the Finance A....
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....e Finance Act, 1994. (2) Since the assessee had already paid an amount of Rs. 6,19,987/- (Rupees Six Lakhs Nineteen Thousand Nine Hundred and Eighty Seven Only), the said amount is appropriated towards the part adjustment of an amount confirmed at (1) above. (3) Interest as applicable for the period, shall be paid by the assessee in the manner prescribed under the provisions of Section 75 of the Finance Act, 1994. (4) A penalty at the rate of Rs. 200/- for every day during which the failure to make payment continued, is imposed on the assessee under the provisions of Section 76 of Finance Act, 1994. (5) Penalty of Rs. 1,000/- is imposed on the assessee of their failure to file the statutory ST-3 returns for the aforesaid period. (6) Si....
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....ls under the limitation as they have filed the Service Tax returns on 1-12-2003 and the search was made on 10-12-2003, while show cause notice is issued to them on 8-2-2006. 4. Learned SDR on the other hand would submit that the Service Tax liability has been worked out based upon the records which were seized from the appellant's residence. It is her submission that the clients/customers of the appellant were contacted and they have confirmed that the Service Tax was paid by them to the appellant. She would later emphasize on the statement on "Service Tax Monthly Summary for the period 1-4-2003 to 31-3-2004", and submit that their own accounts have shown a closing balance of Service Tax summary of Rs. 81,76,789.46. It is her s....
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.... Padmanabhan, Director (Finance) stated that Service Tax liability may be to the tune of Rs. 25 lakh (approx.). However, when he was asked to substantiate his claim on the basis of available records, Sri S. Padmanabhan, failed to do so. On the basis of the scrutiny of the available records and the signed statement of Sri K. Padmanabhan, Managing Director (attached to the Profit & Loss Account), it is seen that an amount of Rs. 81,76,789/- was collected towards Service Tax and the same was not deposited into the Government Account. Neither the Managing Director nor the Director (Finance) has disputed the Service Tax monthly summary statement attached to the Profit & Loss Account." It can be seen from the above reproduced portion that the Ad....