2016 (9) TMI 632 - AT - Service Tax

Service Tax - Member-ship Fees and Business Exhibition Services outside India - Held that - the issue regarding tax on Membership Fee is decided by the CESTAT in the case of FICCI Vs. CST, Delhi 2014 (5) TMI 183 - CESTAT NEW DELHI and the tax on Business Exhibition Service Outside India has also been decided by CESTAT in the case of Cox & Kings India Ltd. Vs. CST, Delhi 2013 (12) TMI 1024 - CESTAT NEW DELHI . The impugned order was issued on 30.11.2009 makes it obvious that above decisions of CESTAT could not have been considered by the adjudicating authority as these judgements were delivered subsequently. Therefore, we are remanding the matter to the primary adjudicating authority for de novo adjudication in the light of the CESTAT judgements. Cenvat demand for excess utilisation and Short payment of service tax May-Oct, 2003 - appellant made a mistake in ST-3 returns and filed the corrected and revised ST-3 returns which was not taken into account by adjudicating authority - Held that - the appellant s submissions regarding filing of corrected and revised ST-3 returns, which would have had a direct bearing with regard to the impugned demand of Cenvat credit for excess utilisation and short payment of service tax during the period May to October, 2003 is also not without substance. - Appeal allowed by way of remand

Summary

Issues:
1. Service tax demand confirmation along with interest and penalties.
2. Tax on Membership Fees.
3. Tax on Business Exhibition Services outside India.
4. Demand of Cenvat credit for excess utilization.
5. Short payment of service tax during May-Oct, 2003.

Service Tax Demand Confirmation:
The appeals were filed against an Order-in-Original confirming a service tax demand of ?60,86,50,138 along with interest and penalties. The impugned demand was categorized into tax on Membership Fees, Business Exhibition Services outside India, Cenvat credit excess utilization, and short payment of service tax during May-Oct, 2003.

Tax on Membership Fees and Business Exhibition Services:
The appellant's advocate referred to previous CESTAT judgments in cases related to tax on Membership Fees and Business Exhibition Services outside India. The advocate argued that the adjudicating authority did not consider corrected and revised ST-3 returns, which could impact the findings on excess credit utilization and short payment of service tax during May-Oct, 2003.

Cenvat Credit Excess Utilization and Short Payment:
The Departmental Representative did not object to remanding the appeal in light of the CESTAT judgments cited by the appellant. The Tribunal noted that the impugned order was issued before the relevant CESTAT judgments, and the appellant's submissions on corrected returns were not considered, potentially affecting the findings on Cenvat credit excess utilization and short payment of service tax.

Judgment and Remand:
Considering the submissions, the Tribunal allowed the appeals for remand to the primary adjudicating authority for fresh consideration in light of the CESTAT judgments and the appellant's submissions. The Tribunal emphasized that a personal hearing should be granted before the fresh adjudication, refraining from expressing any opinion on the case's merits. The remand was deemed necessary due to the non-consideration of relevant judgments and the appellant's submissions by the initial adjudicating authority.