2014 (7) TMI 581 - HC - Service Tax

Demand of service tax - Service tax already paid but documents were not produced - Held that - it is the case on behalf of the petitioner that as such the petitioner had already paid the service tax within stipulated time for which the order-in-original has been passed. It is the case on behalf of the petitioner that the petitioner could not point out the number of documents before the first adjudicating authority which the petitioner has produced before this court. However, considering the fact that the documents which are produced on record before this court and now which are relied upon, were not produced before the adjudicating authority, we are of the opinion that the matter be remanded to the adjudicating authority to consider the show-cause notice afresh and after giving opportunity to the petitioner to produce on record relevant documents to prove that in fact the petitioner has already paid service tax and therefore nothing is due and payable by the petitioner. - Matter remanded back - Decided in favour of assessee.

Summary

Issues:
Challenge to order-in-original dated July 17, 2009, and order dated July 13, 2010, regarding service tax, interest, and penalty under the Service Tax Act.

Analysis:
The petitioner filed a petition under article 226 of the Constitution of India seeking to quash the orders passed by respondent No. 1 and respondent No. 2 regarding service tax, interest, and penalty. The petitioner contended that the service tax had already been paid within the stipulated time, which was not highlighted before the adjudicating authority initially. The petitioner's advocate presented various documents to support the claim that the tax had been paid on time. On the other hand, the respondent's advocate argued that the newly produced documents should not be considered as they were not presented before the adjudicating authority. The respondent suggested remanding the matter to reconsider the show-cause notice, allowing the petitioner to submit the documents supporting the payment of service tax.

Upon hearing both parties, the court noted that although the petitioner had paid the service tax within the stipulated time, the relevant documents were not presented before the adjudicating authority initially. Consequently, the court decided to remand the matter to the adjudicating authority for a fresh consideration of the show-cause notice. The petitioner was granted the opportunity to submit the documents supporting the payment of service tax within six weeks. The impugned orders were quashed, and the matter was remanded to the adjudicating authority for a fresh decision based on the evidence provided by the petitioner. The special civil application was allowed, and no costs were imposed. The rule was made absolute to the extent mentioned in the judgment.