penalty for late deposit of service tax

This query is : Resolved

CA Sanjeev Kr Jain (Querist)
Follow

15 November 2009 Service tax deptt. has imposed penalty for late deposit of service tax, whereas the tax and interest thereon was deposited 6 months late than the due dates but much before issue of SCN,

penalty amount is about 38000/-

I have quotated 4-5 case laws in which it was decided that such penalty is not to be imposed if tax and interest is paid before SCN

the first personal hearing was held in January 2008 and positive assurance was given for AC but again in Nov 09 we have received notice for personal hearings, pl guide with suitable case laws and practical winning approach

Arbind Aggarwal

Arbind Aggarwal (Expert)
Follow

16 November 2009 Penalty can be waived if there is a bonafide reason for late deposit of service tax. There should be a reason like imposition of tax for the first time etc. However you should approach a lawyer to win such cases.

CESTAT case laws do not help much. But the penalty amount may sure be get reduced if argued well.

I may suggest the names of lawyers.