Service Tax
TRT-2025-
Cestat Chennai
Date:-07-03-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 07 March 2023
Parties: M/s. Servocraft HR Solutions Private Limited Vs The Commissioner of Central Excise and Service Tax
Facts –
- The Appellant, M/s. Servocraft HR Solutions Private Limited, on being pointed out by the audit group, paid the amount of Service Tax along with interest for the period from August 2010 to October 2010 which was not paid within due date.
- Show Cause Notice dated 26.09.2011 was issued, proposing to demand for the period from August 2010 to October 2010 along with interest and for imposing penalties Sections 77 and 78 of the Finance Act, 1994.
Issue –
- Whether the penalties imposed under Sections 77 and 78 of the Finance Act, 1994 on the appellant are legal and proper?
Order –
- The Tribunal observed that sub-section (3) of Section 73 of the Finance Act, 1994 provides that no Show Cause Notice is to be issued when the assessee has paid the Service Tax along with interest. It is not dispute that the appellant had paid the Service Tax along with interest on being pointed out by the audit group.
- Also, the appellant has accounted the amounts received by them as well as the details of transactions. An assessee who has suppressed figures in their account or issued parallel invoices so as to evade the payment of tax will not be covered under sub-section (3) of Section 73 of the Finance Act, 1994. As already stated, apart from a vague allegation, there is no evidence that the appellant has suppressed facts with the intent to evade payment of tax.
- Thus, it was held that the penalties imposed are unwarranted and impugned order is modified to the extent of setting aside the penalties imposed under Sections 77 and 78 of the Finance Act, 1994.
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