18 June 2010
We regularly pay service tax late because of financial problem. We paid service tax upto mar-10 with interest and after two days tax evasion officers sent us show cause notice, i want to know can in any way we are liable for penalty since we have already paid service tax before show cause notice? is there any provision for penalty under sec 73(4) under the given circumstances?
18 June 2010
Yes, Penalty will be applicable if an assessee faild to pay service tax within due date. In addition to paying S.T. & Interest u/s 75, not less than Rs.200 for everyday during which the failure continues or penalty@2% of such tax, whichever is higher. However, the penalty shall not exceed the amount of S.T.that assessee has failed to pay
21 June 2010
In the case of Mass Marketing and advertising P Ltd Vs CCE(2006), the assessee had paid service tax after due date but before issue of show cause notice and there supreme court had declared in the above case that the assessee should not pay penalty.Ref.(Case CCe vs Machino Montell (I) Ltd 2004(168) ELT 466 and CCE V. Shree Krishna pipes industries(2004)113 ECR 718(Kar.)The above case is overriding the penalty clause u\s 76????
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