2018 (8) TMI 617 - AT - Service Tax

Payment/adjustment from the cenvat account - Held that - The report dated 4.7.2018 has not properly prepared and captured the actual cenvat credit taken and utilized for payment of service tax on the disputed taxable service - the matter should go back to the original authority for proper computation of the service tax liability and for ascertaining the fact whether, the adjudged amount, in question, had already been deposited by the appellant, as contended by the learned Advocate - appeal allowed by way of remand.

Summary

Issues involved:
Remand of matter for proper computation of service tax liability, utilization of cenvat credit for payment, decision on interest and penalty, opportunity of personal hearing.

Analysis:

1. Remand for proper computation of service tax liability:
The judgment addresses the issue of the accuracy of the report regarding the deposit of the disputed amount by the appellant. The learned AR for Revenue raised concerns about the utilization of excise duty availed as input credit for paying service tax on renting of immovable property. The Tribunal acknowledged these concerns and decided to remand the matter to the original authority for a fresh adjudication order. This remand is aimed at ensuring the proper computation of the service tax liability and verifying whether the adjudged amount has indeed been deposited by the appellant.

2. Utilization of cenvat credit for payment:
The Tribunal noted the contention of the learned AR that the report did not accurately reflect the cenvat credit taken and utilized for paying service tax on the disputed taxable service. The Tribunal agreed with this concern and deemed it necessary for the original authority to reexamine this aspect. The decision to remand the matter includes a directive for the original authority to ascertain the correctness of the payment/adjustment from the cenvat account and ensure that it complies with the relevant regulations.

3. Decision on interest and penalty:
In addition to the remand for the computation of service tax liability, the Tribunal instructed the original authority to decide on whether the appellant is liable to pay interest and penalty under the circumstances of the case. This decision-making process is crucial in determining the full extent of the appellant's financial obligations related to the tax dispute. The Tribunal's directive ensures that all aspects of the case, including interest and penalty considerations, are thoroughly addressed in the fresh adjudication order.

4. Opportunity of personal hearing:
The judgment emphasizes the importance of granting the appellant an opportunity for a personal hearing before the original authority decides the issues afresh. This procedural safeguard ensures that the appellant has a chance to present their case, respond to any new developments, and participate in the decision-making process. By mandating this opportunity for personal hearing, the Tribunal upholds the principles of natural justice and fairness in the adjudication of the tax dispute.

In conclusion, the judgment by the Appellate Tribunal CESTAT MUMBAI involves a comprehensive remand of the matter to the original authority for proper computation of service tax liability, examination of cenvat credit utilization, decision on interest and penalty, and granting of a personal hearing to the appellant. The Tribunal's decision reflects a commitment to ensuring procedural correctness, regulatory compliance, and fairness in resolving the tax dispute at hand.