Decided on July 28,2015

Saibaba Telefilms Pvt. Ltd. Appellant
Commissioner Of Service Tax, Mumbai Respondents


M.V.RAVINDRAN,MEMBER (J) - (1.)THIS appeal is directed against order -in -original No. 31/STC/BR/08 -09 dated 5.11.2008.
The issue involved in this case is regarding the service tax liability on the appellant under the category of 'Programme Producers Service'. The appellant herein had produced a programme i.e. Antakshari for Star India and received consideration from them but did not discharge the service tax liability. The said evasion of the service tax liability was noted by the department and on being pointed out the appellant paid the service tax liability along with interest which has been accepted by the adjudicating authority. The adjudicating authority after following due process of law adjudicated the show -cause notice issued to appellant by confirming the demands raised along with interest, appropriated the amounts paid by the appellant against the demands and interest. He imposed penalties under Section 76 and 78 of the Finance Act, 1994.

(2.)LEARNED Counsel appearing on behalf of appellant would take us through the entire case records. While bringing to our notice the period involved in this case i.e. service tax for the period February to August 2007, the Counsel would submit that show -cause notice was issued on 08.10.2007. He would submit that for the period from 31.03.2006, appellant is required to file the returns by 25.04.2007 and for the period April 2007 to September 2007, appellant is required to file the service tax returns by 25.10.2007. It is his submission that specific dates are mentioned for the purposes of claiming of relief of non -imposition of penalty under Section 80 of the Finance Act, 1994 as there cannot be any suppression of fact with inTent to evade service tax; appellant had filed the returns with the authorities but due to financial crisis could not deposit the amount with the Central Government. He would bring to our notice the findings recorded by the adjudicating authority on this point. He would submit that the appellant having discharged the entire service tax liability and the interest thereof, pleads leniency from imposition of penalties.
(3.)LEARNED D.R. reiterated the findings of the adjudicating authority. He would submit that the adjudicating authority has categorically recorded that the appellant had received the value of taxable service along with service tax and despite that had not deposited the amount of service tax with the Govt. of India. It is his submission that the financial crisis cannot be a reason for delay in payment of tax. It is his submission that appellant had utilized the service tax amount collected from the client for their business purposes which attracts penal action.
We have considered the submissions made at length by both sides and perused the records.


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