2017 (10) TMI 211 - AT - Service Tax

GTA Service - Short payment of service tax - the department had observed that freight/material handling expenses incurred in respect of its various sites is not tallying with the ST-3 returns filed before the Service Tax authorities - Held that - Since on perusal of the relevant documents, the Commissioner (Appeals) has held that there is no short payment of service tax by the respondent on account of GTA service, such findings cannot be disturbed at this juncture, since those findings were recorded based on the records maintained by the respondent - appeal dismissed - decided against Revenue.

Summary

Issues:
Appeal against order of Commissioner (Appeals) - Short payment of service tax on GTA service - Verification of ledger accounts and certificate by Chartered Accountant - Appeal allowed in favor of respondent by Ld. Commissioner (Appeals) - Revenue's appeal before Tribunal - Dismissal of appeal by Tribunal.

Analysis:
The appeal before the Appellate Tribunal CESTAT New Delhi pertained to a case where the revenue challenged an order passed by the Commissioner (Appeals) regarding the short payment of service tax on GTA service by the respondent. The Commissioner (Appeals) had set aside the adjudication order and ruled in favor of the respondent, prompting the revenue to appeal before the Tribunal.

During the proceedings, both sides were heard, and the case records were examined by the Tribunal. The Tribunal noted that the Commissioner (Appeals) had thoroughly verified the ledger accounts maintained by the respondent and also considered a certificate issued by a Chartered Accountant, which indicated that the consolidated ledger account pertained to material handling and transportation charges.

The Tribunal observed that the Commissioner (Appeals) had found no evidence of short payment of service tax by the respondent in relation to the GTA service after reviewing the relevant documents and records maintained by the respondent. As such, the Tribunal concluded that the findings of the Commissioner (Appeals) were based on the evidence presented and could not be overturned at that stage.

Consequently, the Tribunal found no flaws in the impugned order and dismissed the appeal filed by the revenue. The decision was made based on the reasoning that the Commissioner (Appeals) had conducted a proper examination of the records and documents, leading to the conclusion that there was no underpayment of service tax by the respondent for the GTA service.

In the end, the order was dictated and pronounced in the open court, affirming the dismissal of the revenue's appeal.