9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 1381 - AT - Service TaxPenalties - demand with Interest already stand paid by the appellant even before the issue of show cause notice - Held that - Since the amount has already been paid even before issue of show cause notice, there is no justification to impose penalty - penalty set aside. Demand of Interest - CENVAT credit wrongly taken - case of assessee is that since the cenvat credit has been allowed to be lapsed without utilising the same, the Department was not justified in charging interest on the same - Held that - The fact whether the cenvat credit was allowed to lapse or utilised need to be verified and for this purpose the matter is remanded - matter on remand. Refund claim - excess payment of service tax - the appellant refunded the excess Service Tax paid to its customer suo moto and adjusted the same in the month of November, 2009 - Held that - The matter is required to be re-adjudicated after proper verification of the records. The claim of the appellant that excess duty was paid in the month of April is required to be verified as also the claim that the said amount was paid back to the appellant s customer and the same adjusted in November, 2009 - matter on remand. Demand of interest u/r 14 of the Cenvat Credit Rules - it is the submission of the ld. C.A. that the credit has been taken only on the basis of proper documents and copies of such documents were produced before the lower adjudicating authority. However, instead of verifying the same he has ordered payment of service tax - Held that - To facilitate such verification, the impugned order is set aside and matter remanded for re-verification of the documents to be submitted to confirm whether credit has been availed properly - matter on remand. Appeal disposed off.
Issues Involved:
1. Demand of service tax and interest on allegedly improperly taken cenvat credit. 2. Penalty imposition for demands already paid before the issue of show cause notice. 3. Alleged short payment of service tax due to a rate reduction discrepancy. 4. Demand of cenvat credit with interest and verification of documents supporting the credit. Analysis: Issue 1: Demand of service tax and interest on allegedly improperly taken cenvat credit The appellant, a Public Sector Undertaking, was audited for the period 2007-2010, leading to demands for service tax and interest on cenvat credit. The appellant contested that certain demands were already paid before the show cause notice, requesting the penalty to be set aside. The tribunal upheld the demands not challenged by the appellant and set aside the penalty due to pre-payment. Issue 2: Penalty imposition for demands already paid before the issue of show cause notice The tribunal found no justification to impose a penalty on demands already paid by the appellant before the issuance of the show cause notice. Consequently, the penalty involved was set aside. Issue 3: Alleged short payment of service tax due to a rate reduction discrepancy An alleged short payment of service tax amounting to ?11,21,512/- during November 2009 was disputed by the appellant. The appellant claimed a rate reduction discrepancy and refunded the excess service tax paid to customers. The tribunal remanded the matter for re-adjudication to verify the claims and proper adjustment procedures followed by the appellant. Issue 4: Demand of cenvat credit with interest and verification of documents supporting the credit The tribunal addressed the demand of cenvat credit with interest, emphasizing the need for verification of documents supporting the credit availed by the appellant. Lack of reasoning in the adjudicating authority's order led to setting aside the demand and directing a denovo decision post-verification of relevant records. In conclusion, the tribunal disposed of the appeal by upholding certain demands, setting aside penalties, and remanding other issues for re-verification and denovo adjudication. The judgment focused on ensuring proper verification of claims, adherence to procedural requirements, and justification for demands raised by the Service Tax Department.
|
