delay in payment of service for many periods - penal action may attract

JAPAN AIRLINES INTERNATIONAL CO LTD Vs CST, DELHI (2015-TIOL-160-CESTAT-DEL)

 

Facts of case:

appellants having Service Tax Registration No. DL-1/ST/R-I/13/2004-05 in form ST-2 under Section 69 of the Finance Act, 1994 (34 of 1994), were engaged in the business of Cargo Handling Services. As per the provisions of section 68 of the Finance Act, 1994 read with Rule 6(1) & (2) of the Service Tax Rules, 1994, the service tax was required to be paid to the credit of Central Govt. by the 5th of the month immediately following the said calendar month. Where the assesses was an individual or proprietary firm or partnership firm, the service tax was required to be paid to the Govt. by the 25th of the month immediately following the said quarter. The appellants were required to deposit the service tax liable to be paid by them with the bank designated by the Central Board of Excise and Customs for this purpose in Form TR-6 challan . The appellants had contravened the provisions of Section 68 of the Finance Act, 1994 read with Section 66 of the Act ibid & Rules 6(1)& (2) of Service Tax Rules, 1944 as they did not paid the below mentioned amount of service tax for the months of April, 2005 to September, 2005 in time to the credit of the Central Government

Simple issue involved in this appeal is regarding charging of interest and imposition of penalty under Section 76, 76 of the Finance Act 1944 and Rule 15(3) of the Cenvat credit Rules 2004 for delay in payment of Service tax amount of interest is Rs.357/- and penalty imposed is Rs.14,600/-

Held:

delay in payment of ST by due date - delay involving 41 days, 10 days, 61 days and 31 days - Delays have continued over many months and cannot, therefore, be said to be bonafide - such delays cannot be ignored - Penal action was rightly confirmed by adjudicating authority and approved by Commissioner( A) - no question of waiving of penalties u/s 80 of FA, 1994 - Appeal rejected