Customs, Excise and Gold Tribunal - Mumbai
Laxmichand Dharshi vs Commissioner Of C. Ex. on 17 October, 2006
Equivalent citations: [2007]7STT79
ORDER K.K. Agarwal, Member (T)
1. The appellants in this case are engaged in the service of storage and handling of empty containers which is liable to service tax under the category storage and warehousing services. The appellants however failed to pay service tax for the period from 1-10-2002 to 30-4-2003 nor filed ST 3 return for this period which as per their understanding was not liable to service tax and there was some confusion about the same and therefore a clarification was issued by the Board Circular No. 60/9/2003-S.T., dated 10-7-2003 under which it was clarified that storage and handling of empty containers are also covered within the scope of storage and warehouse services. Immediately after coming to know of the same they took registration under service tax in September 2003 and paid the entire tax along with interest on 10-2-2004. It was submitted that the delay in payment in service tax was clearly unintentional and therefore leniency is needed to be shown and penalty is not required to be imposed. It was further submitted that the Government has under Extra Ordinary Tax Payer Friendly Scheme which was introduced in the month of September 2004 permitted all tax payers to pay tax in respect of period prior to the introduction of the scheme with interest and exempted them from penalty. In their case the payment has been made prior to the introduction of the scheme. He referred to the decision of the Tribunal in the case of Commissioner of Central Excise, Bhopal v. Bharat Security Services & Worker's Cont. wherein it has been held that when payment has been made prior to the introduction of the Tax Payer Friendly Scheme then penalty need not be imposed.
2. Heard both sides.
3. I have considered the submissions. I find that though there was some confusion as reflected in the circular issued by the Board on 10-7-2003 there still has been a delay on the part of the appellant in paying the service tax. However, taking into consideration the Tax Payer Friendly Scheme introduced by the Government and the Tribunal decision in the case of Bharat Security Services & Worker's Cont. (cited supra) I set aside the penalty imposed and allow the appeal.
(Dictated in Court)