2018 (7) TMI 700 - AT - Service Tax

Management, maintenance and repair service - demand raised as per the corrigendum dated 5.3.2010 - time limitation - Held that - Such corrigendum is issued by the department with a delay of two years revising the demand without any basis - the appellant is not liable to pay the revised demand as per the corrigendum dated 5.3.2010 and the amount already paid by the appellant would suffice compliance of the demand under dispute in this appeal It is not the case of the department that the appellants have collected service tax. Since the appellant has discharged the service tax along with interest as well as 25% penalty as per the show cause notice dated 24.12.2008, the revised demand cannot sustain - The impugned order is modified to extent of reducing the duty demand as per show cause notice dated 24.12.2008 along with interest and the 25% penalty already paid by the appellant. Appeal disposed off.

Summary

Issues:
- Revision of service tax demand based on a corrigendum issued by the department after two years.
- Appellant's compliance with the original show cause notice.
- Validity of the revised demand and penalties imposed by the authorities.

Analysis:
1. The case involved a dispute regarding the payment of service tax by the appellants for maintenance and operation of electrical equipment. The audit revealed non-payment under the category of management, maintenance, and repair services, leading to a show cause notice and a subsequent corrigendum revising the demand after two years.

2. The appellant argued that they had already paid the service tax as per the original show cause notice along with interest and a penalty of 25%. The appellant contested the validity of the revised demand in light of the delayed corrigendum, citing a precedent to support their stance.

3. The department, represented by the ld. AR, supported the findings of the impugned order, maintaining the validity of the revised demand and penalties imposed by the authorities.

4. After hearing both sides, the Tribunal examined the facts and submissions. It was noted that the appellant had fully paid the demand as per the original show cause notice before the issuance of the order-in-original. The Tribunal found the corrigendum revising the demand after a two-year delay to be unjustified and without a basis.

5. Consequently, the Tribunal held that the appellant was not obligated to pay the revised demand as per the corrigendum. The amount already paid by the appellant was deemed sufficient to comply with the demand in question. The Tribunal emphasized that since there was no evidence of the appellants collecting service tax, the revised demand could not be upheld. Therefore, the impugned order was modified to reduce the duty demand to the amount specified in the original show cause notice, along with interest and the 25% penalty already paid by the appellant.

6. In conclusion, the appeal was disposed of with the order pronounced in open court, reflecting the Tribunal's decision to uphold the appellant's compliance with the original show cause notice and reject the validity of the revised demand and penalties imposed by the authorities.