ASHWANI AND ASSOCIATES Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) IN this case, the Applicant is aggrieved by imposition of penalty of Rs. 20,070/ - in terms of Sections 76 and 77 of the Finance Act, 1994 for failure to pay Service Tax within the stipulated period and failure to submit the return within time as required under Rule 6 of the Service Tax Rules, 1994 and Section 70 of the Act. The Applicant's contention is that since Service Tax was introduced only with effect from 1 -7 -1994 on services rendered by Stock Brokers (the applicant is a Stockbroker), he could not clearly understand the provisions regarding the working out of the amount of taxable service etc., and for this reason, there was a delay in paying the tax and submitting the return which was deposited voluntarily as soon as the value of taxable service was confirmed. He submits that the penalty is not warranted in this situation and prays for dispensation with the pre -deposit requirement.

(2.) THE Id. DR, Shri Panchatcharam reiterates the findings contained in the impugned order.

(3.) ON perusing the order and considering the submissions made in the Stay application and noting that there is no dispute that the Applicant is a new assessee, we are of the view that the Applicant has made out a prima facie case for waiver of pre -deposit of penalty. Accordingly, we dispense with the requirement of pre -deposit of penalty and stay its recovery pending the appeal.