2011 (10) TMI 138 - AT - Service Tax

Correct service tax liability - waiver of pre-deposit - interest thereof and penalty under Section 76 and 77 - while filing ST-3 return, there was an error in reporting the figure - It is the submission of the learned counsel that they have produced the Chartered Accountant s certificate before the Commissioner (Appeals) - It was held that it is unable to appreciate as to whether this certificate was produced before the first appellate authority or not - Hence set-aside the impugned order and remand the matter back to the adjudicating authority to reconsider the issue afresh after following the principles of natural justice - Appeal and stay disposed off.

Summary

Issues:
1. Stay petition for waiver of pre-deposit of service tax, interest, and penalty.
2. Correct service tax liability for a specific period.
3. Discrepancy in reported figures for service charges.
4. Consideration of Chartered Accountant's certificate in appeal.
5. Adequacy of personal hearing provided to the appellant.
6. Remand of the matter to the adjudicating authority for reconsideration.

Analysis:
The appellant filed a stay petition seeking the waiver of pre-deposit of service tax, interest, and penalty amounts. The appeal pertained to the correct service tax liability for a specific period, where the appellant acknowledged the liability but disputed the value for tax discharge. The appellant claimed an error in reporting service charges, stating they received Rs. 18,62,712 but mistakenly reported Rs. 56,44,580 in the ST-3 return. The appellant presented a Chartered Accountant's certificate to support their claim, which was not considered by the Commissioner (Appeals). The issue revolved around the factual matrix of the received amounts by the appellant, necessitating a reevaluation of the case.

Upon review, it was noted that the adjudicating authority did not provide effective personal hearing to the appellant. The Chartered Accountant's certificate, dated after the personal hearing by the Commissioner (Appeals), raised questions about its submission timeline. In the interest of justice, the Tribunal set aside the impugned order and remanded the matter to the adjudicating authority for a fresh consideration following the principles of natural justice. The appellant was instructed to appear before the adjudicating authority for further proceedings.

The Tribunal decided to dispose of the appeal and stay petition, keeping all issues open for reconsideration by the adjudicating authority. The judgment emphasized the importance of a fair hearing and factual assessment in resolving the service tax liability dispute.