2010 (8) TMI 577 - AT - Service Tax

Appeal to Appellate Tribunal - The primary dispute relates to applicability of Notification No. 32/04 and consequently determining the value for the purpose of assessment of the service tax as to whether it is 100% or 25% of the gross amount received by them - the matter deserves to be placed before the Division Bench - It is incumbent on representatives of either side to assist the Tribunal on the issue of jurisdiction whenever the matter is listed before the Single Member Bench.

Summary

Issues:
Applicability of Notification No. 32/04-S.T. dated 3-12-04 for service tax assessment.

Analysis:
The judgment deals with three appeals filed by the department concerning the applicability of Notification No. 32/04-S.T. dated 3-12-04. The original authority had ruled that the respondents did not fulfill the conditions of the Notification, requiring them to pay service tax on the entire value of service charges instead of just 25%. The decision was based on the lack of evidence regarding the non-availment of cenvat credit by the service provider. The Commissioner (Appeals) granted relief to the parties following a previous Tribunal order. The primary dispute revolves around determining the value for service tax assessment, either 100% or 25% of the gross amount received by the respondents. Consequently, the matter is deemed suitable for consideration by the Division Bench.

In the absence of representation from the respondents, the Tribunal heard the Ld. SDR who highlighted the history of appeals by the parties related to an earlier period. The department had filed an appeal against the previous order before the Hon'ble High Court. The Tribunal emphasized the importance of both sides assisting on jurisdictional issues when the matter is listed before the Single Member Bench. The judgment concludes with instructions for the Registry to take necessary actions.