Slow – down in realty sector held to be a reasonable cause for invocation of section 80 of the finance act, 1994.

Toyota Construction pvt. Ltd. Vs. commr.of c. ex., Daman [2014] 36 STR 199 (Tri.- Ahmd.)

 

 

Facts:

The appellants filed services tax returns; however, there was a delay in payments of services tax. The department demanded interest and penalty on the same. An appeal was filed with the contention that since there was a slow-down in realty sector, they were unable to pay services tax in time.

Held:

Having regard to facts of the case, the Tribunal invoked provision of section 80 of the Tribunal invoked provisions of section 80v of the finance act, 1994 as there was a reasonable cause for failure in payment of services tax in time and penalty u/s. 76 was waived off.