2018 (8) TMI 804 - AT - Service Tax

Business Auxiliary Services - suppression of value of service provided - appellant s claim is that the said confirmation of service tax is not appropriate, inasmuch as while providing services, they have received certain amounts on account of the reimbursable expenses as also on account of the supply of goods - Held that - The appellant has not been able to substantiate their plea by production of relevant telephone bills or the purchase of goods orders etc. Appreciating the said fact as also the fact that the demand is much on the lower side and the period involved is almost 12 years back, there is no justifiable reason to interfere in the impugned order - appeal dismissed - decided against appellant.

Summary

Issues:
1. Confirmation of demand under "Business Auxiliary Services" against the appellant.
2. Lack of documentary evidence to substantiate the appellant's claim.
3. Rejection of the appeal due to failure to produce relevant documents/records.

Analysis:
1. The judgment addresses the confirmation of demand against the appellant under the category of "Business Auxiliary Services" amounting to ?2,19,655. The Lower Authorities upheld the demand, citing suppression of the value of services provided to M/s Obra Thermal Power Station. The appellant argued that the confirmation was inappropriate as they had received amounts for reimbursable expenses and goods supply. However, the appellant failed to provide any documentary evidence to support their claim, leading to the Commissioner (Appeals) feeling unable to consider the appeal seriously due to the absence of documentary support.

2. The appellant's failure to produce relevant documents/records to substantiate their plea was a crucial aspect of the case. Despite reiterating their stand before the tribunal, the appellant could not provide any concrete evidence to support their claims. This lack of documentary evidence weakened their case significantly, as highlighted by the tribunal's observation that the appellant had not been able to substantiate their plea through the production of relevant documents/records.

3. Ultimately, the tribunal upheld the impugned order and rejected the appeal. The tribunal considered the lack of documentary evidence, the fact that the demand was relatively low, and the significant time period involved (almost 12 years back) in making their decision. The tribunal found no justifiable reason to interfere with the lower authorities' decision, given the circumstances of the case, and thus upheld the demand against the appellant. The rejection of the appeal was based on the appellant's failure to produce the necessary documentary evidence to support their claims, despite the extended period involved and the relatively low amount in question.