2013 (4) TMI 320 - AT - Service Tax

Adjustment of excess amount paid by the appellant for discharge of Service Tax liability Held that - matter remanded back to the adjudicating authority to reconsider the issue afresh.The impugned order is set aside and the appeal is allowed by way of remand to the adjudicating authority.

Summary

Issues involved: Adjustment of excess amount paid for Service Tax liability, imposition of penalty under Section 76 of Finance Act, 1994, consideration of evidence by the first appellate authority, transfer of CENVAT Credit between units, principles of natural justice.

Analysis:

The judgment addresses an appeal against an Order-in-Appeal concerning the adjustment of excess amount paid by the appellant for Service Tax liability. The issue revolves around the appellant's alleged short payment and the subsequent demand for recovery. The adjudicating authority confirmed a demand of Rs.32,545/- along with interest and imposed a penalty under Section 76 of the Finance Act, 1994. The appellant did not appeal this decision. The first appellate authority, in its order, found no evidence supporting the appellant's claim of excess payment and upheld the demand as Service Tax liability, along with interest and penalties under various Sections.

Upon review, the judge notes that while there was a short payment of duty, the first appellate authority went beyond the show cause notice by considering the issue of Rs.67,453/-, which was not directly addressed to the appellant. The judge also links this issue to the transfer of CENVAT Credit between the appellant's units, previously decided in another order. Consequently, the judge remands the matter back to the adjudicating authority to reconsider all issues together, emphasizing the need for adherence to the principles of natural justice and granting the appellant an opportunity to present additional evidence.

In conclusion, the impugned order is set aside, and the appeal is allowed by way of remand to the adjudicating authority for a comprehensive reconsideration of the issues, ensuring procedural fairness and the appellant's right to present further evidence in support of their case.