2013 (12) TMI 917 - AT - Service Tax

Waiver of pre deposit - Difference in the figures of receipts shown in their balance sheet and ST-3 returns filed with the department - Held that - entire demand has been worked out on the basis of gross taxable value declared by the applicant in their ST-3 returns and that gross receipts shown by them in their respective balance sheets for the relevant period. The Ld. Advocate has fairly conceded that the data & evidences reconciling the differences relating to the taxable value received during the period could not be placed before the Ld. Commissioner. However, the reconciliation statement filed before this Tribunal duly certified by their Chief Accounts officer shows that there is an excess payment of 14.31 Lakhs. Prima facie we find that the Applicant is a Public Sector Undertaking and the Certificate given by the Senior Accounts Officer does carry some weight - Prima facie case not in favour of assessee - Stay granted partly.

Summary

Issues: Application for waiver of pre-deposit of Service Tax and penalty under the Finance Act, 1994.

Analysis:
1. The appellant sought a waiver of pre-deposit of Service Tax amounting to Rs.3.78 Crores and penalty of Rs.3.70 Crores along with penalties under other provisions of the Finance Act, 1994. The dispute arose from differences in receipts shown in the balance sheet and ST-3 returns for the period 2003-2004 to 2006-2007. The appellant contended that the discrepancies were due to non-taxable services included in the balance sheet figures, such as new connection charges and sale of Sim Cards. The appellant acknowledged not presenting all relevant documents to the adjudicating authority but claimed to have reconciled the data, showing an excess payment of Rs.14.31 Lakhs and offering to deposit an additional Rs.25.00 Lakhs.

2. The Revenue argued that the appellant failed to provide necessary data and documents to support their claims, and inconsistencies were noted in the data submitted to the Commissioner. However, the appellant, in response, stated that after reconciling the data, they arrived at final figures for taxable services and Service Tax liability, supported by a statement certified by the Senior Accountant. The Tribunal observed that the demand was based on the taxable value declared in ST-3 returns and gross receipts from the balance sheets. While acknowledging the absence of evidence before the Commissioner, the Tribunal considered the reconciliation statement presented, certified by the Chief Accounts Officer, indicating an excess payment of Rs.14.31 Lakhs. Recognizing the appellant as a Public Sector Undertaking, the Tribunal directed a pre-deposit of Rs.25,00,000 to be made within four weeks, waiving the balance amount of dues adjudged and staying the recovery during the appeal's pendency.

3. In conclusion, the Tribunal found merit in the appellant's reconciliation statement and the certification by the Senior Accounts Officer, leading to the decision to waive the pre-deposit of the balance amount upon compliance with the directed deposit. The judgment emphasized the importance of presenting all relevant data and documents to support claims during adjudication processes, highlighting the significance of thorough documentation and reconciliation in tax disputes to ensure fair assessment and resolution.