Thursday, January 28, 2016

Service Tax delayed payment court decisions


M/s GURUCHARAN MOTORS, MANIPURI VERSUS COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, KANPUR [CESTAT ALLAHABAD]

BRIEF: No penalty is attracted on delayed payment of service tax for the reason bank refused to take deposit in absence of PAN based registration number.

OUR COMMENTS: The Appellant is an "authorized service station" and registered with the Service Tax Department for discharging service tax w.e.f.31.05.2004.

A show cause notice was issued on the assessee for not paying service tax and not filing half yearly returns.

The assessee appeared before the Central Excise on 25.03.2010. It was noticed by the Revenue that he paid the service tax upto 30.09.2007 after which Bank refused

to take deposit of tax in absence of PAN based registration number. The assessee agreed to obtain PAN based registration number and deposited the tax due, on 30.03.2010 i.e. within a week.

A show cause was again issued on the assessee for interest and penalty on 19.05.2011, months after the amount was paid. The assessee contended against the same.

The Hon’ble CESTAT held that it is not case of deliberate default or contumacious conduct by the assessee.

Accordingly, the penalty was dropped.

[Decided in favor of assessee]

Source:
TAX CONNECT
JAV & ASSOCIATES
Chartered Accountants

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