| 75A. Omitted
76. Penalty for failure to pay service tax. –
Any person, liable to pay service tax in accordance with the
provisions of section 68 or the rules made thereunder, who fails
to pay such tax shall pay in addition to paying such tax, and
interest on that tax in accordance with the provisions of section
75, a penalty which shall not be less than one hundred rupees
for everyday during which such failure continues, but which
may extend to two hundred rupees for every day during which
such failure continues, so, however, that the penalty under
this clause shall not exceed the amount of service tax that
he failed to pay.
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Provided that where any service
tax has not been levied or paid or has been short levied or short
paid or erroneously refunded by reason of-
(a) fraud; or
(b) collusion; or
(c) willful mis-statement; or
(d) suppression of facts; or
(e) contravention of any of the provisions of this Chapter or
the rules made thereunder with intent to evade payment of service
tax
The person, liable to pay such service tax or erroneous refund,
as determined under sub-section (2) of Section 73, shall also
be laible to pay a penalty, in addition to such service tax and
interest thereon, if nay, payable by him, which shall not be less
than, but which shall not exceed twice, the amount of service
tax so not levied, or paid or short levied or short paid or erroneously
refunded;
Provided that where such service tax as determined under sub-section(
2) of section 73 and the interest payable thereon under section
(75), is paid within 30 days form the date of communication
of order of the Central Excise officer determining such service
tax, the amount of penalty liable to be paid by such person
shall be twenty five per cent of the service tax so determined;
Provided further that the benefit of reduced penalty under
the first provisio shall be available only if the amount of
penalty so determined has also been paid within the period of
thirty days referred to in that proviso.
Provided also that in case where the service tax is determined
to be payable is reduced or increased by the Commissioner (Appeals),
the Appellate Tribunal or as the case may be the Court, then,
for the purposes of this section, the service tax as reduced
or increased, as the case may be, shall be taken into account.
Provided also that in case where the service tax determined
to be payable is increased by the Commissioner (ppeals), the
Appellate Tribunal or, as the case may be, the court, then the
benefit of reduced penalty under the first proviso shall be
avai;able, if the service tax so increased, the interest payable
thereon and twenty five percent of the consequential increase
of penalty have been paid within thirty days of communication
of the order by which such increase in service tax takes effect.
Explanation : For the removal of doubts, it is hereby declared
that -
(1) the provisions of this section shall also apply to cases
in which an order determining the service tax under sub-section
(2) of section 73 relates to notices issued prior to the date
on which the Finance Bill, 2003 receives the asent of the President;
(2)
the amount paid to the credit of Central Government prior to
the date of communication of the order referred to in the first
proviso or the fourth proviso shall be adjusted against the
total amount due from such person.
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