2007 (10) TMI 266 - AT - Service Tax

Discrepancies in order of original authority - respondent submits that the duty becomes payable only after realization of service charges and therefore, a demand as proposed on the turnover mentioned in the balance-sheet is not to be upheld - Commissioner (Appeals) set aside the order of the original authority as discrepancies are serious in nature. Further service tax becomes payable only on realization of charges for the services rendered- Commissioner is justified in setting aside demand

Summary

The Appellate Tribunal CESTAT Ahmedabad heard a Department's appeal against a Commissioner's order regarding Service Tax demand. The original authority confirmed a demand exceeding the show cause notice amount and imposed a penalty. The Commissioner (Appeals) set aside the order due to discrepancies. The Tribunal rejected the department's appeal, stating that service tax is payable only upon realization of service charges.