COMMISSIONER OF SERVICE TAX, BANGALORE Vs. VANITHA NAMBIAR

JUDGEMENT

(1.) THIS revenue appeal arises from OIA No. 27/06, dated 16 -3 -06 by which the Commissioner (Appeals) has set aside the penalty imposed in OIO No. 63, Divn. III/2005 -06, dated 10 -1 -05. The assessee was covered under the category of Manpower Recruitment Agency and had obtained service tax registration in 2001. They failed to submit ST 3 returns and also to pay the service tax amount payable on their taxable turnover. Therefore they were proceeded against for recovery of the amounts. The Revenue in their ST -5 Form have mentioned the penalties as below :

(2.) LEARNED SDR points out to several judgments noted in ST 3 form to support the revenues case. It is her submission that the assessee was not entitled to retain the service tax after due collection. They had paid it only after it was pointed out after a lapse of several years. Therefore, penalty under different sections was imposable.

(3.) LEARNED Chartered Accountant reiterated the same submissions made before the Commissioner (Appeals) pertaining to the assessee being under mental pressure on account of her fathers illness.