2013 (3) TMI 737 - AT - Service Tax

Summary

Issues involved: Discrepancy in income reflected in balance-sheet and ST-3 Returns, liability to discharge Service Tax on specific amounts, imposition of penalties.

Summary:
The appeal challenged an Order-in-Original passed by the Commissioner of Service Tax, Mumbai, regarding discrepancies in income. The appellant contested the demands of Service Tax, interest, and penalties imposed by the department.

Discrepancy in Income:
- The appellant's income reflected in the balance-sheet differed from figures in ST-3 Returns.
- Department demanded Service Tax of Rs. 92,90,999/- for specific amounts received by the appellant.
- Appellant argued non-receipt of certain incomes and reversal of entries in books of account.

Specific Amounts Disputed:
1. 2005-06 Income (Rs. 5,00,000/-):
- Appellant maintained accrual-based accounts, not receiving the income, hence no Service Tax liability.
2. 2006-07 Sale of Space (Rs. 2,70,26,284/-):
- Income pertained to pre-taxable period, supported by documentary evidence predating tax applicability.
3. 2006-07 Dandia Income (Rs. 29,21,753/-):
- Event organized by appellant for self, not constituting taxable Event Management service.
4. 2007-08 Programme Producer's Service (Rs. 4,50,00,000/-):
- Income from event rights transfer predating taxable period, no Service Tax liability.
5. 2007-08 Misc. Income (Rs. 1,00,000/-):
- Incentive received already discharged of Service Tax liability.

Adjudication and Decision:
- Appellant lacked documentary evidence during initial adjudication, leading to demand confirmation.
- Tribunal directed a fresh consideration by the adjudicating authority with submission of supporting evidence by the appellant.
- The appeal was allowed for remand, and the stay application was disposed of, ensuring appellant's opportunity for a fair hearing.