The Bangalore bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT)reduced the penalty since Triumph India Software failed to pay service tax demand due to financial difficulties.
Shri Venkata Subbarao Kalva appeared on behalf of the Appellant and Shri DyamappaAirani, Deputy Commissioner appeared on behalfof the Respondent.
The appellant was engaged in ‘Technical Writing and Documentation Services’ and was having major customers. The department alleged that they have not discharged the service tax liability of Rs.31,23,376/- from April 2013 to March 2014. It is also alleged that they have not filed ST-3 Returns during the period.
Service tax is a tax levied by the government on service providers on certain service transactions, but is borne by the customers which arecategorized under Indirect Tax and came into existence under the Finance Act, of 1994.
During the investigation, the Managing Director of the appellant-company Smt. Usha Mohan admitted that due to financial problems, they could not discharge the service tax liability from April 2013 to March 2014 and they have also not filed ST-3 Returns for the said period.
The matter was considered by the lower authorities who found that the allegations are sustainable and rejected the appeal filed by the appellant. The Penalty was reduced to Rs.50,000/- by the appellate authority.
It was submitted that the appellant is no longer existing and hence stopped functioning in 2018. Resolution Professional Mr Venkata Subbarao Kalva was appointed as Official Liquidator. The Official Liquidator appeared andmade submissions. A Coram comprising of Mr P A Augustian, Member Judicial after considering the records and submissions reduced the penalty imposed on the appellant Smt. Usha Mohan, Managing Director of Triumph India Software Services Pvt. Ltd.from Rs. 50,000/- to Rs.10,000/- (Rupees Ten Thousand Only).
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