2009 (6) TMI 90 - AT - Service Tax

Appellant has not produced the record for reconciliation - Upon hearing both sides and noticing non-cooperative attitude of appellant, we consider it proper to protect interest of Revenue directing pre-deposit of Rs. 5 lakhs as an interim measure till the reconciliation is made. After depositing Rs. 5 lakhs, the appellant is directed to produce the challan before the learned Joint Commissioner to show their attitude of cooperation and also participation for reconciliation. If the appellant does not produce the challan, the learned Joint Commissioner shall inform such default so that Tribunal shall pass appropriate order.

Summary

Issues:
Levy of service tax on security services received by the appellant.

Analysis:
The judgment revolves around the dispute concerning the levy of service tax amounting to Rs. 15,37,921 on security services received by the appellant. The appellant's contention is that they have paid taxes on the service charges received based on the cash basis of accounting, while the taxes on the receivable amount have been paid upon receipt. The Tribunal had directed both parties to provide a reconciliation statement to ascertain the consideration received for security services. However, the appellant failed to produce the necessary records for reconciliation, leading the Revenue to issue summons due to non-compliance.

The learned Counsel for the appellant assured the Tribunal of cooperation in reconciling the facts and figures and agreed to appear before the Joint Commissioner for adjudication. Despite this assurance, the Tribunal noted the non-cooperative attitude of the appellant and decided to safeguard the Revenue's interest by ordering an interim pre-deposit of Rs. 5 lakhs. The appellant was instructed to deposit this amount and present the challan to the Joint Commissioner as a demonstration of cooperation and willingness to reconcile. Failure to comply with this directive would result in the Joint Commissioner informing the Tribunal for appropriate action.

The Tribunal scheduled the matter for further hearing on 31st July, 2009, after which the Joint Commissioner was tasked with submitting a report on the reconciliation of facts and figures for the Tribunal to issue further orders. The judgment emphasizes the importance of cooperation and compliance in resolving tax disputes and highlights the Tribunal's role in ensuring a fair resolution while protecting the Revenue's interests.