Category: case laws

Accountant can not be held liable for short payment of service tax.

M/S Mahisagar Welding works VS. CCI Ahmedabad Court: West zonal bench at ahmedabad court-III   Appeal No. : ST/328/2012 -SM   Appearance: For assessee: Shri vipul Khandar , Chartered Accountants For revenue: Shri GP thomus, A.R.   Brief: There was short payment of service tax by forging in duty paying challan. Appellant had appealed that accountant was responsible for this act act and assessee should not be held liable. Final order was passed that assessee can’t held liable to any other person, acting as his agent, responsible for his willful wrong act or fraud. Details: The assessee has filed appeal against order passed by Additional commissioner , Ahmedabad III. Shri Vipul Khandar , appearing on behalf of appellant argued that delay in payment of service tax is due to Accountant of assessee who had not deposited service tax in time and had forged in figures of service tax payment challan. The shortfall was made good by depositing service tax with interest. Interest was paid after issue of show cause notice. Mr Khandar also argued that penalty should not be levied in this case. He Relied upon following case for non levy of penalty: CBEC Circular No. 137/167/2006 -CX 4. date 3/10/2007 and Bajaj Travels LTD vs. CST. It was also argued that if the above arguement was not accepted then both penalty cannot be invoked  u/s 76 and 78...

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Service tax abatement not claimed in return – Case law

M/s Bispa India Vs. Commissioner of customs, central excise & service tax, siliguri   (IN THE CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL EASTERN ZONAL BENCH : KOLKATA)     Facts of case:   The applicant/ appellant are registered with the central excise department with effect from 11/04/2005 for providing erection, commissioning and installation services. When the amount of Service Tax paid by them as declared in the ST-3 returns were compared with their audited balance sheet it was fount that during the financial years 2005 – 2006, 2006 – 2007 and 2007 – 2008 they have short paid Service Tax to the tune of Rs. 1.69 crores including Education Cess and Higher Education Cess. Proceedings were initiated against the applicant / appellant by issuing show cause notice dated 11.09.2009. The said show cause notice was confirmed and penalty was imposed by the Commissioner.   The consultant appearing for the appellant said that services provided by them were work contract services and the appellant was eligible for 67% abatement admissible to them under Notification NO. 19/03 – ST dated 21.08.2003 and 1/2006 dated 01.03.2006 which was not allowed by commissioner while determining service tax liability. The consultant submitted that the liability of service tax would be reduced to an amount of 46 lacks after considering above abatement. He has also submitted that figures shown in balance sheet were cum...

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