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2016 (4) TMI 113 - AT - Service TaxDemand of Service tax of ₹ 9.66 crores in respect of various services provided - Services falling under different heads - Appellant contended that its other division from where most of the services were provided i.e. CIRT, Pune has paid its service tax of ₹ 6.03 crores - Invoices produced by the assessee did not tally with the service tax paid by Pune, in the common balance sheet for the two and also there is no co-relation between ST 3 return and TR 6 challan - Held that - it is not understandable that how the challans produced by the appellant would get reflected in the common balance sheet inasmuch as there is no provision in the balance sheet showing any payment of service tax on the basis of different categories or invoicewise etc. Similarly, the observations made by the adjudicating authority in respect of ST 3 return and TR 6 invoices not being co-related is vague observations without any further details as to how the two documents are not in consonance with each other. Ignoring the documentary evidence regarding services provided by CIRT, Pune and paid the service tax by same and making general observations in a legal matter cannot be appreciated. Therefore, the impugned order is set aside and the matter is remanded back. Demand of Service tax of around ₹ 3 crores - Business Auxiliary Service - Services provided to the member transport authorities inasmuch as they were providing services of finalization of Rate contract between the manufacturer vendor and the member transport authorities for which charging the fee from the manufacturer vendor - Held that - as no fee is charged by the appellant from the member transport, the activity may not get covered under the category of Business Auxiliary service . Therefore, matter remanded back. Demand of Service tax of ₹ 12 lakh - Club and Association activity - Held that - the issue is decided by the various High courts. By referring the judgment of Hon ble High court of Jharkhand in the case of Ranchi Club Ltd vs. CCE 2012 (6) TMI 636 - Jharkhand High Court and of Hon ble High court of Gujarat in the case of Sports Club of Gujarat Ltd. vs. Union of India 2013 (7) TMI 510 - GUJARAT HIGH COURT , the matter is remanded back. - Appeal disposed of
Issues:
1. Demand of service tax against an Association of State Road Transport Undertaking (ASRTU) for services provided by its division, Central Institute of Road Transport (CIRT) at Pune. 2. Discrepancy in the payment of service tax by CIRT Pune as claimed by ASRTU. 3. Rejection of ASRTU's claim by the Commissioner and confirmation of service tax demand. 4. Dispute regarding the classification of services provided by ASRTU under "Business Auxiliary service." 5. Tax liability against ASRTU for club and association activities. Analysis: Issue 1: Demand of service tax against ASRTU for services provided by CIRT Pune The proceedings initiated against ASRTU by issuing two show cause notices resulted in the confirmation of a service tax demand of Rs. 9.66 crores by the Commissioner. ASRTU claimed that most services were provided by CIRT Pune, which had paid service tax amounting to Rs. 6.03 crores. However, the adjudicating authority rejected this claim due to discrepancies in the documentation provided by ASRTU. Issue 2: Discrepancy in the payment of service tax by CIRT Pune The rejection of ASRTU's claim was primarily based on the grounds that the invoices did not align with the service tax paid by CIRT Pune as reflected in the common balance sheet. The Tribunal found this reasoning flawed as there was no provision in the balance sheet to show payment of service tax based on different categories or invoices. The Tribunal emphasized the need for proper verification of the documentary evidence by the adjudicating authority. Issue 3: Rejection of ASRTU's claim and confirmation of service tax demand The Tribunal concluded that the impugned order needed to be set aside and the matter remanded to the original authority for verification of the service tax payments made by CIRT Pune. The adjudicating authority was directed to re-decide the issue based on the verified information. Issue 4: Dispute regarding the classification of services under "Business Auxiliary service" A significant part of the remaining service tax demand belonged to business auxiliary service. ASRTU contended that the services provided did not fall under this category as they were facilitating rate contracts between manufacturers and member transport authorities without charging fees from the members. The Tribunal left this issue open for the adjudicating authority to decide on merits upon remand. Issue 5: Tax liability for club and association activities A small amount of tax was confirmed against ASRTU for club and association activities. The matter was referred to judgments by various High Courts for guidance. ASRTU was advised to present its liability plea before the Commissioner for a decision in line with the legal precedents. In conclusion, the Tribunal remanded the matter for proper verification and re-decision on the service tax demand and other related issues, ensuring a fair and accurate adjudication process.
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