Service tax appeal

Hello. This is Rajdeep.

I have a Querry.

Our client has received The Order Under Section 35B and imposed panelty Under section 76. But our client has deposited the service Tax with interest and panelty for late filling of ST-3 & late payment of service tax,  before the issuance of Show Cause Notice. But as per the Service Tax dept., he is liable for the panelty.

Further, the Dept. is also saying that the appellant paid the service tax only after the dept. pointed out the same otherwise same would have gone unnoticed.  but our client has not received any such reminder.

So what are the grounds under which we can sustain our claim??????

Please provide the Photocopies Serviec Tax payment Challans. [GAR-7] to the concerned officer.

Regards,

Devendra Kulkarni

Dear Rajdeepsinh

sec 80 provides that no penalty shall be imposable on the assessee for any failure ref in sec 76  and sec 77 , 78 if the assessee proves that there was reasonable cause for said failure.  there have been a number of decided cases where it has been held that no penalty if the tax and interest has been paid before issue of SCN. there are cases where it has been held penalty is not leviable as amatter of course and should not be exhorbident .

further the government has amended sec 80 (2) of finance act 2012 wherein no penalty shall be imposable for failure pay service tax as on 06/03/2012 on taxable service relating to renting of immovable property . the benefit amendment can be extended other service on the same of logic of interest and tax being paid for waiver of penalty

therefore suitable draft your reply and you have better chance to win at the appelate level

Dear Rajdeepsinh

You can file petition for condonation of delay and prefer an appeal.