Applicant cannot become illiterate to pay ST after collecting it from customers
AGAINST the imposition of penalties u/s 76, 77 and 78 of the FA, 1994 the applicant is before the CESTAT. The applicant has already paid the ST demanded and the interest.
It is submitted that the applicant is illiterate; that the person who was appointed for assessment had not assessed the ST timely and, therefore, there was a delay.
The Revenue representative informed the Bench that the applicant had collected the service tax but did not pay to the government and it was only after issuance of SCN that the service tax collected was paid along with interest and, therefore, imposition of penalty is in order.
The Bench observed -
"4. …I am not impressed with the argument that the applicant is illiterate. Applicant cannot become illiterate to pay service tax after collecting it from the customers. In any case this cannot be criterion for payment of tax. Applicant has collected the amount from his customers and raised the bills. After collecting the amount there is no reason why the collected amount is not deposited with the Government. Prima facie the applicant has not made out a case for total waiver of pre-deposit of penalties…."
Saying so, the Bench directed the applicant to make a pre-deposit and report compliance.