2018 (5) TMI 314 - AT - Service Tax

Valuation - calculation error in the order of learned Commissioner (Appeals) - Held that - after calculation of value and Service Tax by the learned Commissioner (Appeals), the department has scrutinized the evidences and found that the learned Commissioner (Appeals) has erred in arriving at the taxable value received by the assessee and accordingly the Service Tax amount confirmed is erroenous - the facts needs to be scrutinized by the adjudicating authority - appeal allowed by way of remand.

Summary

Issues:
1. Calculation of taxable value and Service Tax by the learned Commissioner (Appeals).
2. Imposition of interest and penalty on the appellant.
3. Remand of the matter to the adjudicating authority for correct assessment.

Analysis:
1. The case involved an appeal by both the Revenue and the assessee against the same Order-in-Appeal due to a common issue. The assessee provided Rent-a-Cab services to a company and was alleged to have not paid Service Tax on the received taxable value. The demand was initially confirmed, but on appeal, the Commissioner reduced the taxable value. The Revenue challenged this calculation, stating an error in the order. The Tribunal found merit in the Revenue's argument and remanded the matter to the adjudicating authority for a correct assessment of the taxable value and Service Tax demand on Rent-a-Cab services.

2. The Revenue appealed against the calculation made by the Commissioner, arguing for a higher Service Tax amount. The Tribunal agreed that there was an error in the calculation and decided to remand the matter for proper assessment. As a result, the imposition of interest and penalty on the appellant was also subject to reassessment based on the corrected taxable value. The Tribunal emphasized the need for a thorough scrutiny by the adjudicating authority to determine the accurate assessable value of the taxable service and to calculate the penalty accordingly.

3. Despite multiple listings and notices, the appellant did not appear for the hearing, leading to the Tribunal proceeding with the case after hearing the Revenue's arguments. The Tribunal acknowledged the Revenue's contention regarding the calculation error and the need for a detailed reassessment of the taxable value and Service Tax demand. Consequently, the appeals were allowed by way of remand, directing the adjudicating authority to reevaluate the matter comprehensively to arrive at a correct assessment of the taxable value and associated liabilities.