2008 (3) TMI 200 - AT - Service Tax

Booking air passage tickets - Appellant is contending that there is gross violation of natural justice as department has not given the worksheet for arriving at the tax liability despite their persistent request - appellants submitted that at least the Commissioner (A) could have given a copy of the said worksheet to them appellants have deposited the tax liability due by them and the excess liability is not sustainable including penalties - stay application allowed

Summary

Issues involved:
1. Calculation of service tax liability and penalty for commission received on booking air passage tickets.
2. Violation of principles of natural justice due to non-provision of worksheet for tax liability calculation.
3. Adjudication of the case based on the submissions and actions of the appellants and the department.

Analysis:

Issue 1: Calculation of service tax liability and penalty
The appellant was required to deposit the balance of service tax amounting to Rs. 11,48,159, including penalty, with a total confirmed service tax of Rs. 19,98,159 for commission received on booking air passage tickets. The appellant had already deposited Rs. 8,50,000 before the show cause notice was issued, contesting the calculation method by the department. The Commissioner (A) noted the absence of providing the worksheet for tax liability calculation to the appellants, who argued for a decision on merits. The department defended their calculation based on scrutinized records.

Issue 2: Violation of principles of natural justice
The appellants claimed a violation of natural justice as they were not provided with the worksheet for tax liability calculation despite persistent requests. The Commissioner (A) acknowledged the absence of providing the worksheet by the Original Authority, agreeing that it should have been made available to enable the appellants to contest the calculation. The case was directed for final hearing before a Single Member Bench, with a waiver for the balance amount granted due to the admitted deposit of Rs. 8,50,000 by the appellants.

Issue 3: Adjudication based on submissions and actions
The Tribunal considered the submissions and actions of both parties, emphasizing the importance of providing the worksheet for tax liability calculation to ensure a fair contestation of the case. The matter was directed for final hearing before a Single Member Bench, with a stay application allowed to prevent recovery of the balance amount even after 180 days, in line with the Apex Court's decision on the matter.

This judgment highlights the significance of providing necessary documentation for tax liability calculation to ensure transparency and adherence to principles of natural justice in tax disputes.