2008 (9) TMI 184 - AT - Service Tax

Non-payment of service tax under two categories i.e BAS and C/F Agents service - In matters of service tax before coming to a conclusion about the taxability it is very necessary to describe the actual service alleged to have been rendered by the party - finding is only that they had paid the service tax when the lapse was pointed out original order revision order and even appeal papers not stated what actually is the nature of the service rendered by appellant case remanded

Summary

Issues:
Non-payment of service tax under "Business Auxiliary Services and Clearing & Forwarding Agents" service, lack of details on the nature of service rendered by the appellant, challenge to the maintainability of the impugned order, absence of relevant details before the Tribunal.

Analysis:
The appeal was filed against the Review Adjudication Order RA 22/2007 passed by the Commissioner of Service Tax, Bangalore. The appellants were issued a show cause notice for non-payment of service tax under specific categories. The Order-in-Original indicated that the appellants paid the service tax before the show cause notice was issued, despite not paying it when due. However, there was a lack of discussion on the nature of the service provided by the appellants. The show cause notice did not contain a statement of facts, making it challenging to understand the activities carried out by the appellant. The Original Authority and the Commissioner of Service Tax did not provide clarity on the nature of services rendered, merely mentioning broad categories without detailed descriptions. The Commissioner opined that a penalty should have been imposed, leading to the remand of the matter to the Original Authority for a de novo decision. The Tribunal emphasized the necessity of describing the actual services alleged to have been provided before determining tax liability.

The Tribunal highlighted the importance of providing detailed findings on the activities carried out by the appellant and whether they are liable for service tax. The lack of specifics in the appeal book and the failure to present the nature of services rendered hindered the Tribunal's ability to make a decision. Therefore, the matter was remanded to the Original Authority for a comprehensive decision within three months, emphasizing the need for a detailed finding on the activity carried out and the potential liability for service tax. The appellants were instructed to cooperate with the Adjudicating Authority during the process. The appeal was disposed of with these directions, emphasizing the necessity of presenting all points before the Original Authority for a thorough decision in accordance with the law.