2018 (8) TMI 796 - AT - Service Tax

Repetition of SCN - No rebuttation by Original Authority - Held that - The grounds of appeal are repetition of show cause notice and the findings by Original Authority have not been rebutted by Revenue - appeal dismissed - decided against Revenue.

Summary

Issues: Revenue's appeal against Order-in-Original regarding service tax liabilities for the financial years 2007-08 to 2011-12.

Analysis:
The case involved a dispute over service tax liabilities for the financial years 2007-08 to 2011-12. The respondents, who owned a mall and provided various services, were alleged to have underpaid service tax. The Revenue contended that there was a significant variance between the value shown in the ST-3 returns and the gross income as per the balance sheet. The Revenue claimed that the respondents should have paid a higher amount of service tax based on the gross income. Additionally, the Revenue argued that the respondents were not eligible for Cenvat Credit during the period under review. A show cause notice was issued to the respondents, calling upon them to explain the discrepancies and the alleged underpayment of service tax. The respondents defended their position by explaining that certain charges, such as parking charges, electricity reimbursement charges, and common area maintenance charges, were not subject to service tax. They argued that the charges were either not recovered from tenants or were exempt under specific notifications. The Original Authority examined the evidence and contentions presented by both parties. The Original Authority concluded that the parking charges were not recovered from tenants, the electricity reimbursement charges were exempt under a specific notification, and the common area maintenance charges were not related to services rendered to tenants. Consequently, the Original Authority dropped the demands related to these three issues.

The Revenue, dissatisfied with the Original Authority's decision, filed an appeal before the Appellate Tribunal. During the proceedings, the arguments put forth by both parties were reiterated. The Appellate Tribunal carefully examined the contentions and evidence presented. After thorough consideration, the Tribunal upheld the findings of the Original Authority. The Tribunal noted that the grounds of appeal raised by the Revenue were mere repetitions of the contentions in the show cause notice and failed to rebut the findings of the Original Authority. Consequently, the Tribunal found no merit in the Revenue's appeal and rejected it. The impugned order in favor of the respondents regarding the three disputed issues was upheld.

In conclusion, the Appellate Tribunal dismissed the Revenue's appeal and upheld the Original Authority's decision regarding the disputed service tax liabilities for the specified period. The Tribunal found that the contentions raised by the Revenue lacked merit and failed to challenge the findings of the Original Authority, leading to the rejection of the appeal.