ORDER IN ORIGINAL NO.

ST/DIV-IV/ 152/20010-11

Sub:- Show cause cum Demand Notice F.NO.ST/Mum/DN-IV/SCN/CBL/02/2006/1730 dt 3-4-2006

issued to M/s. Sunny Cable Network, Cable House, Near Maruti Tower, off 488, 10 Western
Exp. Highway, Thakur Complex, Kandivali (East), Mumbai–400101.

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Brief Facts of the Case

M/s. Sunny Cable Network, situated at Cable House, Near Maruti Tower, Off 488 Western Express
Highway, Thakur Complex (East), Mumbai – 400 101 (hereinafter referred to as the “Assessee”) are
holders of PAN based Assessee Code No. AACPK13184ST001 and Registration No.
ST/MV/CBL/REG/354/03 under section 69 of the Finance Act 1994 (32 of 1994) as amended issued to
them under section 69 of the Chapter V of the Finance Act 1994 (32 of 1994) as amended and having
undertaken to comply with the conditions prescribed under the Service Tax Rules 1994.

The Assessee failed to furnish the half yearly returns as proscribed under section 70 of the Finance Act
1994 read with Rule 7 of the said Rules as amended in the pre scribed form ST-3 to the service Tax office on
or before the due dates as shown below.

Sr. No. Period of Return Due Date Return filed on

1 Oct. 2004 to March 2005 25-4-2005 14-3-2006

2 April 05 to Sept. 2005 25-10-2005 14-3-2006

Besides delayed filing of the periodic returns it was also noticed that the assessee failed to pay
interest at appropriate rate on the delayed payment of the service tax, under section 75 of the said Act
during the period as detailed below.

Period Service tax Due Date Paid On No of days Interest

paid delayed (Rs.)
Oct. 04 to Dec. 20,260.00 25-01-05 21-3-05 65 469.00
2004
April 05 to 12,997.00 31-03-05 01-10-05 184 852-.00
June 05
July 05 to Sept. 20,755.00 05-07-05 01-10-05 88 651.00
05
7,730.00 05-07-05 21-11-05 47 129.00
Total 2101.00

The show cause cum Demand Notice dt 3-4-2006 is crystal clear and the assessee’s contraventions have
been poignantly spelt out. The Notice is dtd. 3.4.2006 but as on record the assessee failed to file any
reply all these years preferring to ignore the same. When the notice was taken up for adjudication and a
letter dt. 11-7-2010 for personal hearing was sent to them the assessee through their CA pleaded that
their unit has so far not received any copy of the notice dt. 3-4-2006 and requested for an extra/Xerox
copy of the Notice. This is inexplicable, since the notice was despatched to the assessee at their recorded
address via RPAD/HAND Delivery though loss in transit cannot be ruled out. They further assured that
short payment shall be paid immediately on fuller examination of the Notice.
 The assessee thus could get an extra/Xerox copy of the Notice dt. 3-4-2006 on 26-11-2010. As
ascertained the assessee paid up the entire demand amount vide 4 challans all dt. 6-12-2010 and
furnished the copies of the same for record in support of their plea on record. Thus the entire demand
amount has been realized from the assessee. The credentials of the assessee thus appear to be clean and
there is reason to believe that no wilful evasion had been intended by the assessee. As such imposing
penalty under section 76, 77 may not be a fair proposition. Further as the assessee reiterated that their
unit never received any notice through post, the same appear to be tenable since loss in transit is quite
possible.

Based upon the facts and findings as on record, I proceed to pass the following order.

ORDER

I confirm the demand of interest of Rs. 2,101=00 under section 75 of the finance Act 1994. As the
assessee has paid the same, I appropriate the same. Further I drop the penalty proceedings for the
reasons discussed above.

(H.G. Parate)
Dy. Commissioner,
Service Tax, DN-IV,
Mumbai – II
To,

M/s Sunny Cable Network,Cable House, Near Maruti Tower, off 488, 10 Western Exp. Highway,
Thakur Complex, Kandivali (west), Mumbai – 400 101.

Copy to:

1. Asstt. Commissioner Service Tax,TRB/Mum-II,

2. Supdt. Service Tax Gr.II, DN-IV,
3. Master File.