With poor financial position - No Evasion penalty on account of non-payment
The Supreme Court of India held that where
assessee had admitted tax liability but did not pay
tax due to poor financial position or due to non recovery
of service tax from customers, assessee
cannot be held guilty of evasion and evasion
penalty cannot be levied.
Delhi Transport Corporation v. Commissioner of Service
Tax. 69 taxmann.com 175.