PINK CITY COMMUNICATIONS Vs. CST

JUDGEMENT

(1.) THE appellants filed this appeal against imposition of penalty under Sections 75 -A, 76, 77 and 78 of Finance Act, 1994.

(2.) THE appellants were providing service to M/s Airtel by way of selling sim cards, mobile connections and recharge coupons. They were earning commission against the sales of sim cards, mobile connection and recharge coupon. The appellant got registration on 6.12.2004. They paid tax in the month of March, 2005 for the period July, 2003 to March, 2005. The learned Counsel submits that the appellant deposited the tax before issue of show cause notice. He further submits that the appellant applied for availing the Amenity Scheme valid upto 30th November, 2004 by their application dated 1.11.04. However, there was dispute on levy of tax on the service of the appellant and therefore, there is a delay in deposit of the tax. In support of his contention, he placed the relevant portion of the Chartered Accountant Journal for the month of 2004 as well as their letter dated 14.2.2005. He submits that there is no suppression of fact with intent to evade payment of tax and therefore, Section 78 cannot be invoked. That delay in paying tax is due to confusion therefore, Sections 75, 76 and 77 cannot be invoked.

(3.) THE learned DR reiterates the finding of the Commissioner (Appeals). He submits that the appellants were registered in the month of December, 2004. He further submits that the appellant failed to avail the amnesty scheme upto November, 2004 and therefore, they are liable to pay penalty under the Finance Act, 1994. He submits that the department detected the short levy of tax and it is a case of suppression of fact.