Priyadarshani S.S.K.Ltd vs Commissioner Of Central Excise, ...
- CitationAPPEAL No.ST/119/10-Mum
Ratio decidendi
The rule this decision rests on
The service recipient liable under the GTA provisions for service tax on goods transport services cannot escape that liability by pleading financial hardship or labour unrest, where it has admitted before the lower authorities that the tax is payable and the reasons advanced are not justifiable grounds for non-payment. Where service tax, together with interest, remains outstanding and undischarged, a penalty under section 76 of the Finance Act, 1994 is not to be set aside merely on the ground that the assessee seeks relief from it.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
(Arising out of Order-in-Appeal No. AGS (04) 118/2010 dated 05-01-2010 passed by Commissioner of Central Excise (APPEALS), AURANGABAD)
For approval and signature:
Honble Mr. M.V. Ravindran, Member (Judicial) and Honble Mr. C.J. Mathew, Member (Technical)
======================================================
1. Whether Press Reporters may be allowed to see : No the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the : No CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3. Whether Their Lordships wish to see the fair copy : Seen of the Order?
4. Whether Order is to be circulated to the Departmental : Yes authorities?
====================================================== Priyadarshani S.S.K.Ltd. Appellant Vs. Commissioner of Central Excise, Aurangabad Respondent
Appearance:
Shri D.R.Gadekar, Consultant for Appellant Shri K.K.Das, Deputy Commissioner (AR), for Respondent
CORAM: Honble Mr. M.V. Ravindran, Member (Judicial) Honble Mr. C.J. Mathew, Member (Technical)
Date of Hearing : 28/08/2015 Date of Decision : 28/08/2015
ORDER NO
Per: M.V. Ravindran
This appeal is directed against Order-in-Appeal No. AGS (04) 118/2010 dated 05-01-2010.
2. Heard both sides and perused the records.
3. The issue involved in this case is regarding the demand of service tax liability under GTA for the period 2004-05, 2006-08 wherein demand of Rs. 11,57,246/- along with interest was confirmed and penalty under section 76 is imposed by the adjudicating authority. The first appellate authority has upheld the demand of the service tax liability along with the interest and also the penalties.
4. After hearing both sides, we find that the appellant has no case as he has admitted before the lower authorities that the service tax liability for the period in question is payable and there cannot be any dispute for the period in question, service tax liability has to be discharged by the service recipient if he is one of the category of persons mentioned; which in this case is that the appellant has a factory manufacturing the sugar. We find that the reason put forth by the appellant for non-discharge of service tax liability, is that there was financial hardship and labor unrest. We agree with the findings of the first appellate authority these reasons are not justifiable reasons for not paying of service tax liability.
5. Learned Counsel was emphasizing that penalty imposed under section 76 of the Finance Act 1994, be set aside. We find no reason to accept such a prayer as in the case in hand, it is on record that appellant has not discharged the service tax liability and the interest thereof and still there is outstanding service tax liability and interest.
6. In view of the forgoing we hold that the impugned order is correct and legal and does not suffer from any infirmity. The appeal being devoid of merits, is rejected. (Pronounced in Court)
(C.J. Mathew) Member (Technical) (M.V. Ravindran) Member (Judicial)
akp 1 3 APPEAL No.ST/119/10-Mum
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