2018 (6) TMI 1600 - AT - Service Tax

Excess and short payment of service tax - appellant sought time for verification but respondent did not give opportunity and confirmed the demand - principles of natural justice - HELD THAT - The appellants have filed calculation of service tax liability under different heads and have claimed that there has been an excess payment of ₹ 5,52,696/-. On the facts and under the circumstances of the case it appears that the evidences of payment of service tax and the calculation charts have either not been placed before the Adjudicating Authority or has not been correctly appreciated to enable the correct appreciation of the factual position. Matter remanded to the original authority for consideration of the submissions and the evidences - appeal allowed by way of remand.

Summary

Issues: Alleged contravention of statutory provision and non-payment of service tax during 2001-02 to 2005-06.

In this case, a Show Cause Notice was issued alleging contravention of statutory provisions and non-payment of service tax during the period of 2001-02 to 2005-06. The adjudicating authority confirmed a demand of ?1,63,03,729 along with interest and imposed penalties under sections 76, 77, and 78 of the Finance Act, 1994. The appellant argued that there were instances of both excess and short payment of service tax due to the case system of accounting adopted by BSNL. The appellant provided detailed calculations for each year to support their claim of excess payment in some years and short payment in others. They also highlighted issues related to non-taxable values and sought time for verification, which was not granted by the respondent. The appellant contended that they had paid the admitted service tax and were trying to rectify errors in their tax calculations. The Tribunal observed that the evidence of payment and calculation charts were not adequately presented before the Adjudicating Authority, leading to a lack of proper appreciation of the factual position. Consequently, the Tribunal set aside the impugned order and remanded the matter to the original authority for reconsideration. The appellants were instructed to cooperate in the Denovo proceedings by providing evidence and calculation charts to support their claims, and the Adjudicating Authority was directed to pass a new order promptly due to the age of the matter. Ultimately, the appeal was allowed by way of remand, emphasizing the need for a thorough review of the evidence and calculations in the case.

This judgment addresses the issues of alleged contravention of statutory provisions and non-payment of service tax during a specific period. It underscores the importance of presenting comprehensive evidence and calculation charts to support claims during adjudication. The Tribunal's decision to remand the matter for further consideration highlights the significance of due process and the need for a meticulous review of facts in tax-related disputes. The case also illustrates the challenges faced by parties in reconciling tax liabilities due to accounting methods and errors, emphasizing the need for accurate record-keeping and timely verification processes to avoid disputes. The Tribunal's directive for prompt resolution due to the age of the matter reflects the importance of timely adjudication in tax cases to ensure fairness and efficiency in the legal process.