2012 (9) TMI 303 - AT - Service Tax

Demand of service tax with interest - business auxiliary service Held that - Appellants also want to produce Chartered Accountant s Certificate in support of their claim that the appellants have not provided any business auxiliary service - information received by the appellants after passing of the adjudication order, under the RTI Act, is relevant to the facts of the present case - matter remanded to adjudicating authority

Summary

Issues:
1. Appeal against adjudication order for demand of service tax with interest and penalty.
2. Miscellaneous Application for additional information under RTI Act and Chartered Accountant's Certificate.
3. Dispute over whether providing business auxiliary service to other units is taxable.
4. Interpretation of Inter-Division Charges in trial balance.
5. Reliance on Tribunal decisions regarding services provided to own units.
6. Consideration of information obtained under RTI Act in the case.
7. Remand of the matter to the adjudicating authority for fresh decision.

Analysis:
The appeal before the Appellate Tribunal CESTAT, Kolkata was lodged against an adjudication order confirming the demand of service tax with interest and penalty on the grounds of providing business auxiliary service, deemed taxable under the Service Tax Rules. The appellants sought to introduce new evidence via a Miscellaneous Application under the RTI Act and a Chartered Accountant's Certificate to support their claim of not providing business auxiliary service. They argued that supplying packing materials to their own unit did not constitute a taxable service, citing Tribunal decisions in their favor.

The Revenue contended that the appellants were indeed providing business auxiliary service to other units, thus subjecting them to service tax. The Department's representative highlighted that the information obtained under the RTI Act should not impede the adjudicating authority's decision based on the show-cause notice and existing evidence. They emphasized the appellants' failure to explain Inter-Division Charges reflected in the trial balance, supporting the demand.

The Tribunal acknowledged the new information obtained under the RTI Act as relevant to the case and deemed it necessary for the adjudicating authority to reconsider the matter. Consequently, the impugned order was set aside, and the case was remanded for fresh consideration, directing the adjudicating authority to review the newly produced documents and the case laws cited by the appellants. The Revenue was granted the opportunity to present additional evidence, and the appeal was disposed of through remand, along with the Miscellaneous Application.

In conclusion, the Tribunal's decision focused on the importance of considering all relevant information, including that obtained under the RTI Act, in determining the tax liability concerning business auxiliary services provided by the appellants to their own units. The case was remanded for a fresh decision, emphasizing a fair hearing for both parties and the need for a thorough review of the evidence and legal precedents involved.