ARVIND LIMITED Vs. COMMISSIONER OF SERVICE TAX, AHMEDABAD

JUDGEMENT

(1.) THE appellants hold valid centralized registration for taxable services viz. scientific and technical consultancy, maintenance or repair, erection, commissioning and installation, test, inspection and certification, transport of goods by road, business auxiliary, consulting engineer, convention, fashion designer, management consultancy, market research agency and online database access or retrieve service. The appellants filed the ST3 returns for the period April, 2006 to September, 2006 on 26-10-2006. On verification of the returns, it was noticed that the payment of Service tax had been made after the due date along with interest of Rs. 4,182/-.

(2.) AFTER adjudication and appellate proceedings, penalty has been imposed under Section 76 in respect of each month where there was a delay equal to the amount of Service tax payable.

(3.) THE learned Advocate on behalf of the appellants submits that appellant is a composite textile mills and has many departments. In the regular course of the business Departments make payment to foreign based providers and it is only after the payments that the intimation is given to person handling the Service tax payments in the company. Thereafter appellant is required to examine the details of payment, contract and ascertain the category of Service tax and its applicability. This is long process and involves many questions of interpretation requiring legal expert advice. It is because of these processes that there was delay in discharge of tax liability. It is also because of these circumstances that appellant has various categories for payment of Service tax. It would be appreciated in these circumstances the delay should be viewed not as intentional but reasonable and therefore no penalty should be imposed. The fact of payment voluntarily with interest also shows their bona fide. The submissions have not been dealt with by Appellate Commissioner.