Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   CBIC issues draft rules for Customs valuation *  Top Headlines: Threshold for Benami deals, green bond investors, and more *  Govt aims 1-hour clearance for goods at all ports *  Exporters Allowed To Use RoDTEP, RoSCTL Scrips To Pay Customs Duty, Transfer Them; Rules Amended *  Millions of labourers to be affected by brick producers’ strike over hike in GST, coal rates *  Inauguration of ‘kendriya GST parisar’ *  Transporter can seek Release of Conveyance alone, not Goods under GST Act: Madras HC *  GST: Quoting of DIN Mandatory for Responding to Notice, Govt Modifies Portal *  Firms can soon file claims for GST credits of ?400 cr *  CBIC issues modalities for filing transitional credit under GST. *  Mumbai: Man creates 36 fake GST firms, arrested for input tax credit fraud of Rs 23 cr *  Report to restructure Commerce Ministry under study; idea is to set up trade promotion body: Goyal *  Firms can soon file claims for GST credits of ?400 cr *  Gambling Alert! Govt May Levy Up To 28% GST; UP, Bengal Back Move *  EPFO backs raising retirement age to ease pressure on pension funds *  India Moving Up Power Scale, Set to Become Third Largest Economy By 2030 *  Airfares Get Expensive: What Changes for Flyers From Today? *  IRCTC Latest News: Passengers to Pay More For Cancelling Confirmed Rail Tickets Soon. *  IBC prevails over Customs Act, says Supreme Court. *  As GST enters sixth year, a time for evaluation and reassessment *  There’s GST on daily essentials as Centre needs money to buy MLAs: Arvind Kejriwal *  Now, GST on cancellation of confirmed train tickets, hotel bookings *  GST kitty for top States could rise 20% in FY23, says Crisil *  French customs officials seize another cargo vessel over Russia sanctions *  TradeLens builds on Asia momentum with Pakistan Customs deal *  Hike tax on tobacco, reduce affordability & increase revenue: Civil society organizations to GST council *  Bihar: ?10 crore tax evasion on tobacco products detected in raids *  Centre failed on GST, COVID; would it be anti-national? Rajan on Infosys row *  Service Tax not Chargeable on Income Tax TDS portion paid by recipient: CESTAT grants relief to TVS *  Foreign portfolio investors make net investment of Rs 7575cr in Sep so far
Subject News *  Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr *   GST (Tax) E-invoice Must For Businesses With Over Rs 5 Crore Annual Turnover *   Both Central GST and excise duty can be imposed on tobacco, rules Karnataka high court *   CBIC Issues Clarification On Extended Timelines For GST Compliance *   CBIC Issues Clarification On Extended Timelines For GST Compliance *  Budget 2023- 9.6 crore gas connections *  GST: Tamil Nadu Issues Instructions for Assessment and Adjudication Proceedings *  GST: CBIC Extends Last Date for filing of ITC *  GST collection in September surpasses Rs 1.4 lakh crore for straight seventh time *  Dollar smuggling case: Customs chargesheet names M Sivasankar as key conspirator. *  Hike in GST rates fuels inflation *  Assam: CBI arrests GST commissioner in Guwahati *  GST fraud worth ?824cr by 15 insurance Cos detected *  India proposes 15% customs duties on 22 items imported from UK *  Decriminalising certain offences under GST on cards *  Surge in GST collections more due to higher inflation: India Ratings *  MNRE Notifies BCD and Hike in GST Rates as ‘Change in Law’ Events But With a Condition | Mercom India *   Solar projects awarded before customs duty change allowed cost pass-through *  Rajasthan High Court Dismisses Writ Petitions Challenging Levy Of GST On Royalty *   GST revenue in September likely at Rs 1.45 lakh crore *  Govt working on decriminalising certain offences under GST, lower compounding charge *  Building an institution like GST Council takes time, trashing is easy: Sitharaman *  GST collections in Sept may touch ?1.5 lakh crore *  KTR asks Centre to withdraw GST on handlooms *  After Gameskraft, More Online Gaming Startups To Receive GST Tax Claims *  Madras HC: AAR Application Filed Under VAT Does Not Survive After GST Enactment *  Threshold for criminal offences under GST law may be raised *  Bengaluru: Gaming company faces biggest GST notice of Rs 21,000 crore *  CBIC clarifies Classification of Cranes for GST, Customs Duty *  Customs seize gold hidden in bicycle in Kerala airport  

Comments

Print   |    |  Comment

PJ/Case Laws/2011-12/1439

Service Tax with Interest paid – SCN for imposing penalty issued after 1 year – not sustainable

Case: M/s AMIRAS ENTERPRISES Vs CC E, RAJKOT
 
Citation: 2010-TIOL-1236-CESTAT-AHM
 
Issue:- Service Tax with Interest paid – SCN for imposing penalty issued after 1 year – not sustainable – case falling under Section 73 (3) – Section 80 invokable.
 
Brief Facts:- Appellants are engaged in providing manpower recruitment service. The service tax for the period from October 2006 to March 2007 was paid on 13.07.07 with interest and for the period from April 2007 to September 2007 the service tax was paid on 18.10.07 with interest.
 
Department issued show cause notice to the appellants initiating penal proceedings on 11.06.08. Penalty under Section 76 was imposed by the Original Authority.
 
Against the imposition of penalty, appeal is before the Tribunal.
 
Appellant’s Contention:- Appellant contended that as per the provisions of Section 73(3) of Finance Act, 1994, when the assessee has paid the service tax with interest before issue of show cause notice, no show cause notice shall be issued by the central excise authorities. Therefore Appellant submits that the proceedings initiated against the appellants should not have been initiated at all in the first place. Further Appellant also relies upon the decisions of the Tribunal in similar circumstances, wherein the Tribunal took a view that penalty imposed under Section 76 cannot be sustained and held that assessee met the requirement of Section 73(3) of the Finance Act, 1994. The cases cited by him are:
 
- U.B. Engineering Ltd. Vs. CCE Rajkot [2009-TIOL-1192-CESTAT-AHM]
 
- Santhi Casting Works Vs. CCE Coimbatore [2009-TIOL-161-CESTAT-MAD]
 
- Electro World Vs. CCE, Chandigarh [2010-TIOL-520-CESTAT-DEL]
 
- CCE Vs. Shree Khodiyar Security Guard & Supplying Services [2009 (19_ STT 200 (Ahd-CESTAT)]
 
- CCE, Vs. Gurunanak Cold Drinks [2005-TIOL-1147-CESTAT-DEL]
 
Appellant also relies on the Circular issued by the Board as on 03.10.2007 stating that where the service tax and interest have been deposited further proceedings need not to be taken up.
 
Appellant also submitted that the appellant is a proprietary concern and they provide manpower service to only one company and the nearest bank to the appellant is 60 KM away and he requests taking all these factors into consideration a lenient view u/s 80 of the Finance Act, 1994 is also called for.
 
Reasoning of Judgment:- The Tribunal held that all the precedent decisions cited by Appellant support their case. In Appellant’s case the show cause notice was issued after one year and that too after the assessee had already paid the service tax with interest. Therefore the assessee is clearly covered by the provisions of Section 73(3) was of Finance Act, 1994. Further, it was held that under the circumstances, this is also a fit case for lenient view by applying the provisions of Section 80 of Finance Act, 1994.
 
Decision:- Appeal allowed. 

Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com