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Sai Software and Informatics V/S Commr. of Cus., C. Ex. & S.T., Guntur


Company & Directors' Information:- R S SOFTWARE (INDIA) LTD. [Active] CIN = L72200WB1987PLC043375

Company & Directors' Information:- C K SOFTWARE PRIVATE LIMITED [Active] CIN = U72501DL2000PTC106184

Company & Directors' Information:- INFORMATICS (INDIA) LIMITED [Active] CIN = U29100KA1980PLC003819

Company & Directors' Information:- K K SOFTWARE PRIVATE LIMITED [Active] CIN = U72900DL2009PTC193030

Company & Directors' Information:- A K C SOFTWARE PRIVATE LIMITED [Active] CIN = U72200DL2004PTC128462

Company & Directors' Information:- P AND P SOFTWARE PRIVATE LIMITED [Active] CIN = U74899DL1994PTC057212

Company & Directors' Information:- SOFTWARE INDIA PRIVATE LIMITED [Active] CIN = U72200GJ1995PTC025791

Company & Directors' Information:- N. D. SOFTWARE PRIVATE LIMITED [Strike Off] CIN = U72200TG1998PTC029778

Company & Directors' Information:- T AND H SOFTWARE PRIVATE LIMITED [Active] CIN = U72200UP2000PTC025638

Company & Directors' Information:- A E C INFORMATICS PRIVATE LIMITED [Amalgamated] CIN = U72200AP2006PTC051761

Company & Directors' Information:- M S SOFTWARE PRIVATE LIMITED [Active] CIN = U72200DL2005PTC133997

Company & Directors' Information:- G A S SOFTWARE PRIVATE LIMITED [Active] CIN = U72200DL2004PTC127546

Company & Directors' Information:- B B SOFTWARE LTD [Strike Off] CIN = L30009WB1995PLC072361

Company & Directors' Information:- H K SOFTWARE PRIVATE LIMITED [Strike Off] CIN = U72200WB2001PTC093967

Company & Directors' Information:- J SOFTWARE PRIVATE LIMITED [Strike Off] CIN = U72200TZ2000PTC009229

Company & Directors' Information:- K S M SOFTWARE PRIVATE LIMITED [Active] CIN = U72200DL2004PTC128463

Company & Directors' Information:- R B SOFTWARE PRIVATE LIMITED [Active] CIN = U72200DL2005PTC140322

Company & Directors' Information:- SOFTWARE INDIA PRIVATE LIMITED [Active] CIN = U72200RJ1995PTC010577

Company & Directors' Information:- R J SOFTWARE PRIVATE LIMITED [Active] CIN = U72200DL2005PTC133815

Company & Directors' Information:- I & I SOFTWARE INDIA PRIVATE LIMITED [Strike Off] CIN = U72200TN2005PTC056262

Company & Directors' Information:- D F SOFTWARE INDIA PRIVATE LIMITED [Strike Off] CIN = U72200TZ2003PTC010629

Company & Directors' Information:- E. C. SOFTWARE INDIA PRIVATE LIMITED [Active] CIN = U72900TN2007PTC063486

Company & Directors' Information:- Q 3 INDIA SOFTWARE PRIVATE LIMITED [Active] CIN = U72900TN2007PTC065786

Company & Directors' Information:- S G INFORMATICS (INDIA) PRIVATE LIMITED [Active] CIN = U51909DL1996PTC080455

Company & Directors' Information:- K Y SOFTWARE PRIVATE LIMITED [Strike Off] CIN = U72200DL2005PTC136072

Company & Directors' Information:- T M I SOFTWARE PRIVATE LIMITED [Strike Off] CIN = U72200KA2005PTC036299

Company & Directors' Information:- B C L SOFTWARE (INDIA) PRIVATE LIMITED [Strike Off] CIN = U30007MH1999PTC117922

Company & Directors' Information:- M I S SOFTWARE PRIVATE LIMITED [Active] CIN = U72200TN2008PTC068694

Company & Directors' Information:- A. T. SOFTWARE PRIVATE LIMITED [Active] CIN = U72200TG1996PTC023841

Company & Directors' Information:- J A K SOFTWARE PVT LTD [Active] CIN = U72200DL2001PTC111929

Company & Directors' Information:- R R SOFTWARE PVT LTD [Under Process of Striking Off] CIN = U72200KL1991PTC006051

Company & Directors' Information:- A M H SOFTWARE PRIVATE LIMITED [Strike Off] CIN = U72200DL2005PTC132410

Company & Directors' Information:- S S INFORMATICS PRIVATE LIMITED [Active] CIN = U72900DL1999PTC100497

Company & Directors' Information:- P D A SOFTWARE PRIVATE LIMITED [Strike Off] CIN = U72900DL2003PTC123465

Company & Directors' Information:- K C SOFTWARE PRIVATE LIMITED [Active] CIN = U74899DL1989PTC036923

Company & Directors' Information:- I SOFTWARE PRIVATE LIMITED [Strike Off] CIN = U72300MH2012PTC225903

Company & Directors' Information:- V S INFORMATICS PRIVATE LIMITED [Active] CIN = U72900MH2010PTC205754

Company & Directors' Information:- V M SOFTWARE PRIVATE LIMITED [Strike Off] CIN = U72900PN2010PTC136847

Company & Directors' Information:- U & I INFORMATICS PRIVATE LIMITED [Under Process of Striking Off] CIN = U72200TG2013PTC089996

Company & Directors' Information:- D E INFORMATICS PRIVATE LIMITED [Strike Off] CIN = U72200JK2012PTC003501

Company & Directors' Information:- H M SOFTWARE PRIVATE LIMITED [Strike Off] CIN = U72200HP2011PTC031756

Company & Directors' Information:- S N R SOFTWARE PRIVATE LIMITED [Strike Off] CIN = U72900DL2012PTC243073

Company & Directors' Information:- C M S SOFTWARE PRIVATE LIMITED [Active] CIN = U74899DL2005PTC142352

Company & Directors' Information:- S M I T SOFTWARE COMPANY PRIVATE LIMITED [Strike Off] CIN = U74899DL2006PTC144816

Company & Directors' Information:- A D SOFTWARE PRIVATE LIMITED [Strike Off] CIN = U72200KA2002PTC030722

Company & Directors' Information:- 2 S INFORMATICS PRIVATE LIMITED [Active] CIN = U72200KA2015PTC084405

Company & Directors' Information:- H. A. N. R. E. J SOFTWARE PRIVATE LIMITED [Strike Off] CIN = U72200TG2008PTC062044

    Final Order No. A/30028/2017 in Appeal No. ST/20139/2015

    Decided On, 02 January 2017

    At, Customs Excise Service Tax Appellate Tribunal Regional Bench Hyderabad

    By, THE HONORABLE JUSTICE: SULEKHA BEEVI C.S.
    By, MEMBER

    For Petitioner: R. Dakshina Murthy, Advocate And For Respondents: P.S. Reddy, Assistant Commissioner (AR)



Judgment Text


1. The above appeal is filed against the order passed by the Commissioner (Appeals) who upheld the confirmation of service tax as well as the penalty imposed under Section 78 and Section 70 of the Finance Act, 1994. On behalf of the appellant the ld. Counsel Sh. R. Dakshina Murthy submitted that the appellant is not contesting the confirmation of service tax and the interest demand thereon. He submitted that the appellant confines the challenge in the appeal on the imposition of equal amount of penalty of Rs. 89,920/- under Section 78 of the Finance Act and also the penalty imposed under Section 70 of the Finance Act for late filing of returns. He pointed out that the Commissioner (Appeals) had set aside the penalty of Rs. 15,000/- imposed under Section 77(2) of the Finance Act, 1994. The ld. Counsel submitted that the appellant had discharged the entire amount of service tax liability prior to the passing of the Order-in-Original along with interest which was appropriated by the adjudicating authority. The appellant had paid penalty of Rs. 18,770/- which was also appropriated by the adjudicating authority. Further, within one month of passing of the Order-in-Original, that is, on 19-10-2012 the appellant had paid Rs. 3,712/- towards penalty which would make the total penalty paid equal to 25% of the service tax confirmed by the adjudicating authority. The ld. Counsel submitted that the appellant was not given the option of reduced penalty by the adjudicating authority as well as the Commissioner (Appeals). He pleaded that the appellant having discharged the 25% reduced penalty may be granted waiver of the equal amount of penalty imposed by the adjudicating authority. It was also argued that under Section 70 of the Finance Act, 1994 during the relevant period the maximum penalty that could be imposed was Rs. 2,000/- for each return that was filed with delay. That the appellant had committed delay in filing only 3 ST-3 returns and therefore the appellant having discharged Rs. 6,000/- towards this late fee the balance of the late fee (penalty) may be set aside.

2. Against this the ld. AR Sh. P.S. Reddy reiterated the findings in the impugned order. He submitted that the appellant has paid part of the service tax after the issuance of the show cause notice and therefore is liable to pay the equal amount of penalty. It was also argued that the appellant has delayed filing of 6 ST-3 returns and therefore is liable to pay the balance late fee (penalty) of Rs. 6,000/-.

3. I have heard both sides. On perusal of records it is clear that the appellant has not been given an option of reduced penalty as provided under Section 78 of the Finance Act, 1994. The appellant has paid Rs. 18,770/- towards penalty on 3-4-2012 which has been appropriated by the adjudicating authority. Thereafter on 19-10-2012 the appellant has paid Rs. 3,712/- towards penalty which would make the reduced penalty of 25% of service tax demand. The Order-in-Original is dated 21-9-2012 and the appellant has thus discharged the reduced penalty of 25% within one month of passing of the Order-in-Original. It is also to be mentioned that though the Commissioner (Appeals) discussed the argument put forward by the appellant regarding the reduced penalty the appellant was denied the benefit of reduced penalty while passing the first appellate order. In a catena of decisions it has been held that the appellant is eligible for reduced penalty of 25% of the service tax demand. In view thereof, I hold that the equal amount of penalty upheld by the Commissioner (Appeals) is unjustified. The same is set aside.

4. However, I do not find the arguments put forward by the ld. Counsel with regard to the late fee imposed under Section 70 to be convincing. The department contends that the appellant has delayed 6 ST-3 returns filed with delay whereas the ld. Counsel submits that only 3 ST-3 returns were filed belatedly. In view thereof, I uphold the late fee imposed under Section 70 and taking into consideration the submissions made by the ld. AR that the appellant has delayed 6 ST-3 returns, I hold that the appellant is liable to pay the balance of Rs. 6,000/-. In the result, the equal amount of penalty imposed under Section 78 is set aside.

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The impugned order is modified to the extent of setting aside the equal amount of penalty and is modified by giving benefit of paying reduced penalty of 25% of the service tax demand, without disturbing the confirmation of service tax and the interest thereon. The penalty imposed under Section 70 as discussed above is maintained and appellant shall pay balance of Rs. 6,000/- under Section 70. The appeal is partly allowed in above terms, with consequential reliefs, if any.
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