Appellant has collected ST from their customers but have failed to remit to exchequer - appellant is repeated offender - this is not case where any leniency is merited as it would send wrong signal to tax-paying community
SERVICE tax demand of Rs. 1,52,08,411/- was confirmed against the appellant in respect of security services rendered by them. Interest on the said service tax demand is also confirmed apart from imposition of penalties. An amount of Rs. 25,92,035/- paid by the appellant has also been appropriated towards the demand by the CCE, Pune III.
Before the CESTAT with a Stay application, the appellant submitted that they do not dispute the service tax liability or the fact that they have collected the service tax from their customers. Nevertheless, they seek leniency.
The Revenue submitted that the appellant is a repeated offender and does not deserve any leniency and that they should be put to strict terms.
The Bench observed -
"5. ..., we observe that the appellant has collected the service tax from their customers and have failed to remit the same to the exchequer. We also observe that the appellant is a repeated offender and this Tribunal itself in half-a-dozen cases have confirmed pre-deposit of huge amounts which the appellant have collected from their customers. Therefore, it is not a case where any leniency is merited or required to be shown, as the same will send a wrong signal to the tax-paying community. Therefore, we direct the appellant to remit the balance amount of service tax along with interest within a period of two weeks and report compliance…"