Service tax appeal

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CA Rajdeepsinh Kanchava

Senior accountant at KPO

736 Points Joined February 2011

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??????

Replies (5)

Devendra

Chartered Accountant

4780 Points Joined March 2009

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

Regards,

Devendra Kulkarni

CA Rajdeepsinh Kanchava

Senior accountant at KPO

736 Points Joined February 2011

Originally posted by : Rajdeepsinh
	we have already send copies of challan but they issued order to pay the panlty under sec. 76. and we failed to respond to the same order within 3 months and 1 and half year has passed from the issuance of order

V.Rajalakshmi

proprietrix

65 Points Joined June 2009

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

CA Rajdeepsinh Kanchava

Senior accountant at KPO

736 Points Joined February 2011

Originally posted by : V.Rajalakshmi

thanx for reply.

but another problem is due date of filling appeal i.e. 3 months has already passed, & i m finding resonable cause for late filling appeal.

The constitution of our client is Partnership Firm.