2018 (1) TMI 1483 - AT - Service Tax

Levy of service tax - outdoor catering services - benefit of exemption under N/N. 21/2004-ST dated 10.09.2004 - penalties - Held that - The matter has come up before the Tribunal in the assessee-Appellants own case M/S SHIV SAI CATERER & SUPPLIER AND M/S S.S. SANSTHAN VERSUS CCE, INDORE 2016 (8) TMI 44 - CESTAT NEW DELHI , where the Tribunal has confirmed the demand of Service Tax, but by taking a lenient view dropped the penalties. Demand of service tax upheld - penalties set aside - appeal allowed in part.

Summary

Issues:
- Appeal against Order-in-Appeal No. IND/116&117/2011 dated 14.03.2011 by Commissioner of Customs & Central Excise (Appeals), Indore.
- Exemption under Notification No. 21/2004-ST dated 10.09.2004 withdrawn by Notification No. 02/2006-ST dated 01.03.2006.
- Demand for Service Tax and penalties imposed for the period October 2007 to March 2009.
- Confirmation of demand of Service Tax by Appellate Tribunal CESTAT, New Delhi.
- Dropping of penalties under Section 80 of the Finance Act, 1994.

The judgment pertains to two appeals filed by the assessee-Appellants against the Order-in-Appeal No. IND/116&117/2011 dated 14.03.2011 by the Commissioner of Customs & Central Excise (Appeals), Indore. The case revolves around the assessee-Appellants providing outdoor catering services and availing exemption under Notification No. 21/2004-ST dated 10.09.2004, which was subsequently withdrawn by Notification No. 02/2006-ST dated 01.03.2006. Consequently, for the period between October 2007 to March 2009, the lower authorities demanded Service Tax and imposed penalties. The assessee-Appellants, feeling aggrieved, lodged the present appeals for redressal.

The Appellate Tribunal CESTAT, New Delhi, presided over by MR. (Dr.) Satish Chandra and Mr. B. Ravichandran, JJ., heard the arguments presented by Sh. Kumar Vikram, counsel for the Appellants, and Sh. Sanjay Jain, representing the Department. Upon reviewing the case and considering the available evidence, the Tribunal noted that a similar matter had previously been adjudicated by the Tribunal in the assessee-Appellants' own case. In the previous instances, Final Orders No. 52467-52468/2016 dated 14.07.2016 and Final Orders No. 54054-540552017 dated 13.06.2017 had confirmed the demand for Service Tax but had shown leniency by dropping the penalties.

In line with the earlier decisions, the Tribunal upheld the demand for Service Tax in the present case. However, invoking the provisions of Section 80 of the Finance Act, 1994, the Tribunal decided to drop the penalties that had been imposed. Consequently, both appeals filed by the assessee-Appellants were partly allowed, confirming the Service Tax demand while setting aside the penalties. The judgment was dictated and pronounced in open court, bringing the legal proceedings to a conclusion.