VISTA INFOTECH Vs. COMMR. OF SERVICE TAX, BANGALORE

JUDGEMENT

(1.) IN terms of the impugned order, the appellants are required to pre -deposit the following amounts :

(2.) WE heard both sides.

(3.) THE learned Advocate stated that during the relevant period even though the appellants collected the service tax amount from their clients, they could not pay it to the department on account of financial hardship. It was stated that one client owed an amount of Rs. 1.4 Crores to the appellant and they did not pay up the dues. The financial hardship was mainly on account of the above factor. Revenue proceeded against the appellants for penal action. However, even before the issue of show cause notice, the appellants discharged their service tax liability along with interest on 5 -7 -2007 to 19 -7 -2007. Therefore, there is a prayer for waiver of the pre -deposit of the penalties imposed. He also urged that there was actually no intention to evade payment of service tax. It is his contention that the issue should be examined in the light of Section 73(3) of the Finance Act, 1994. In terms of the above provision, when the service tax assessee voluntarily pays the amount, no show cause notice is contemplated.