ORDER
V.K. Agrawal, Member (T)
1. M/s. CM. Jain & Co. are challenging the imposition of penalty @ 100/- per day for delay in payment of Service Tax and Rs. 200/- for late filing of return.
2. Heard Shri. Bipin Garg, learned Advocate and Shri. P.M. Rao learned D.R. The appellants are practising as Chartered Accountants. Service Tax on services of Chartered Accountants was introduced w.e.f. 17-10-1998. The learned Advocate has submitted that the delay in filing the return and delay in payment of Service Tax was on account of challenging the constitutional validity of levy of Service Tax on practising Chartered Accountants in the High Court which has granted stay of operation and implementation of Service Tax; that, further, after they came to know about the Order of the High Court dismissing the Writ Petition and for depositing the amount of tax, the appellants had deposited the whole amount of arrears of Service Tax and filed the necessary returns.
3. After considering the submissions of both the sides, I observe that the Hon’ble High Court of Rajasthan in its judgment in Civil Writ Petition No. 4018/98 had permitted the present Chartered Accountants to comply with the requisite formalities prescribed under Service Tax Law and to pay the Service Tax within two months. The appellants have neither deposited the Service Tax nor filed the requisite returns within the said period of two months. In view of this, penalties are imposable under the provisions of Sections 76 and 77 of the Finance Act, 1994. However, taking into consideration the facts and circumstances of the case, I am of the view that the penalty of Rs. 3,000/-, on both the counts, will meet ends of justice. I order accordingly. The appeal is disposed of in these terms.