𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 – 𝗖𝗘𝗦𝗧𝗔𝗧 𝗠𝘂𝗺𝗯𝗮𝗶: 𝗠𝗲𝗺𝗯𝗲𝗿𝘀 𝗼𝗳 𝗖𝗵𝗮𝗿𝗴𝗲𝗹𝗲𝘀𝘀 𝗖𝗼-𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝘃𝗲 𝗦𝗼𝗰𝗶𝗲𝘁𝘆 𝗮𝗿𝗲 𝗻𝗼𝘁 𝗹𝗶𝗮𝗯𝗹𝗲 𝗳𝗼𝗿 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘃, 𝗮𝗻𝗱 𝗡𝗼 𝗣𝗲𝗻𝗮𝗹𝘁𝘆 𝗳𝗼𝗿 𝗡𝗼𝗻-𝗳𝗶𝗹𝗶𝗻𝗴 𝗦𝗧-3 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: Co-operative Housing Society members are not liable for service tax, so no penalty applies for delayed return filings.

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Prabhadevi Himgiri Co-operative Housing Society Ltd 𝗜𝘀𝘀𝘂𝗲: Whether penalty under Section 70 of the Finance Act can be imposed for non-filing of Service Tax returns when the society is not liable to pay service tax. 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant failed to file Service Tax returns for 2009-2011, leading to a show-cause notice for penalties.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that since the Co-operative Housing Society’s members are providing services to themselves, no service tax is applicable. Therefore, Section 70, which mandates returns only for those liable to pay tax, has no relevance. As a result, no penalty for delayed filing could be imposed.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Prabhadevi Himgiri Co-operative Housing Society Ltd. vs. Commissioner of Service Tax, Mumbai – Service Tax 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 28 November 2022 📜 This ruling emphasizes that if service tax is not applicable, penalties for late filing of returns are also not justified.