2007 (10) TMI 144 - AT - Service Tax

Data processing work and maintenance of billing and accounting work carried out by non CAs or unskilled employees on contract basis not comes in category of Practicing CAs - Demands are also barred by time as all the details had been furnished by the assessee and as noted by the Commissioner

Summary

Issues:
1. Whether the activity undertaken by the assessee falls under the category of practicing Chartered Accountants.
2. Whether the demands raised by the revenue are barred by time due to the information provided by the assessee.

Analysis:

Issue 1:
The case involved a revenue appeal against an Order-in-Appeal passed by the Commissioner (Appeals) in favor of the assessee. The dispute revolved around the nature of the activity performed by the assessee, which the revenue sought to categorize as that of practicing Chartered Accountants. However, the Commissioner, after thorough consideration, determined that the activity was carried out by unskilled workers on a contractual basis, not falling within the realm of duties performed by Chartered Accountants. This conclusion was supported by previous judgments rendered by the bench. The Tribunal concurred with this finding, emphasizing that the activity was not exclusive to CAs and was not part of their professional obligations. Consequently, the Tribunal rejected the revenue's argument on this issue.

Issue 2:
Regarding the second issue of time bar, the Commissioner noted that the assessee had diligently provided all relevant information to the concerned authorities, including details of remuneration received and services rendered. The assessee had submitted half-yearly returns containing comprehensive information, leaving no room for alleging suppression of facts. The Commissioner, based on the information and returns filed by the assessee, concluded that there was no justification for invoking a larger period for demanding duty. The Tribunal upheld this decision, highlighting that the revenue had not contested the details submitted by the assessee. As a result, the Tribunal dismissed the revenue's appeal, affirming the Commissioner's ruling on both the merits and the time bar aspect.

In summary, the Tribunal upheld the Commissioner's decision, ruling in favor of the assessee on both issues raised in the appeal. The activity undertaken was deemed outside the scope of practicing Chartered Accountants, and the demands raised by the revenue were considered time-barred due to the comprehensive information provided by the assessee.