Penalty u/s 76 and 77

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Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2012 sir, we are a pvt ltd firm and had given our property on rent and have been in service tax from 2007 for the day the renting of immovable service was introduced , we paid service tax and filed return regularly , in wake of high court order in case of home solutions retail india ltd v/s UOI we stopped paying service tax from 1-04-2009 , we were asked by the department regarding our receipt of service tax from april 09 to Dec 09 , we submitted the details to department and consequently were issued a show cause notice by the department , on receipt of the show cause notice we paid the service tax payable along with interest there of under protest and started regularly paying service tax , until recently when our matter came up for hearing the authority in their order has imposed penalty u/s 76 of the finance act @ 200/per day till the date of actual payment or 2% of ST which ever is higher and Rs 5000 u/s 77 of finance act 1994.Can appeal in the matter reduce the penalty , non payment of ST was not intentional but the said was not considered by the authority.

should we file a appeal for penalty? please suggest.
thanks in advance.

Querist : Anonymous

Querist : Anonymous (Querist)

19 May 2012 please help me with this issue ?

Arun Gulati

Arun Gulati (Expert)

19 May 2012 Brother..Department cannot imposed penaltyon you as there are judgments. Moreover, you are Demand is not recoverable from you, if the show cause notice was issued to you after one year from the relevant date, as it cannot be amount to supression. being a advocate in Home solutions-II case, I am aware about all these things. There was even no need to pay tax as you have paid, immediately file refund application and appeal. for further help, you may call me at 9999180329.

Arun Gulati

Arun Gulati (Expert)

19 May 2012 Moreover, there is amendment proposed in the finance bill, 2012 to save person like you from penalty. In any case, at no stretch of imagination you are liable to pay penalty.

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