Sec 77 (c)

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This query is : Resolved

CA Suresh Choudhary (Querist)

07 May 2009 If the service tax department has issued the notice under section 77 (c) for the clarification of the payment made to a contractor towards construction contract and if the party does not reply within period allowed what are the consequences.

Is there any chances of getting waiver of penalty applicable.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

07 May 2009 SCN will be issued proposing penalty u/s 77(c).
If replied with a reasonable cause for the failure/delay penalty may be waived u/s 80.

CA Suresh Choudhary

CA Suresh Choudhary (Querist)

07 May 2009 What is resonable cause

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

08 May 2009 Statute does not define reasonable cause. Where a statute does not define an expression used in the statute,it has to be understood as one in common parlance. This is established law as pointed out in CST V Jaswant Singh Charan Singh AIR 1967 SC 1454.

CA Suresh Choudhary

CA Suresh Choudhary (Querist)

08 May 2009 Dear Sir,
Thanks for your reply but can we say that following reason is reasonable cause.

The Chief accountant was out of station till 16th May 09. (The due date to reply was 30th April 2009).

Please reply as it’s urgent. I hope you will reply.

Thanks in advance.

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