2018 (8) TMI 1284 - AT - Service Tax

Liability of Service Tax - amount received by the appellant from Andhra Pradesh State Road Transport Corporation (APSRTC) for the period 2008-09 to December, 2011 - demand of tax with Interest and penalty - Held that - On an identical issue this Bench in the case of M.D. Yousuf Pasha and others 2017 (8) TMI 70 - CESTAT HYDERABAD where it was held that service tax along with interest needs to be upheld, but set aside the penalty - there is no reason to deviate from such a view already taken by the Tribunal. The impugned order to that extent upholds the confirmation of tax liability along with interest is correct and the penalties as imposed by the lower authorities are set aside - appeal allowed in part.

Summary

Issues:
Condonation of delay in filing the appeal before the Tribunal; Service tax liability on amount received from APSRTC for the period 2008-09 to December 2011; Confirmation of tax liability, interest, and penalties.

Condonation of Delay:
The Tribunal allowed the application for condonation of delay in filing the appeal as the delay was suitably justified. None appeared on behalf of the appellant, but the issue was found to be covered by a previous judgment, and the appeals were taken up for disposal despite the absence of representation.

Service Tax Liability - Amount Received from APSRTC:
The issue for consideration was the service tax liability on the amount received by the appellant from APSRTC for hiring out buses for the period 2008-09 to December 2011. The Lower Authorities confirmed the demands raised, interest, and penalties on the consideration received by the appellant. Referring to a previous judgment upheld by the Hon’ble Apex Court, the Tribunal upheld the confirmation of tax liability along with interest but set aside the penalties imposed by the lower authorities.

Confirmation of Tax Liability, Interest, and Penalties:
Based on the previous judgment, the Tribunal upheld the confirmation of tax liability along with interest on the amount received from APSRTC. However, the penalties imposed by the lower authorities were set aside. The impugned order confirmed the tax liability and interest but deemed the penalties as incorrect, leading to the disposal of the appeals accordingly.

This judgment by the Appellate Tribunal CESTAT Hyderabad addressed the issues of condonation of delay in filing the appeal, service tax liability on the amount received from APSRTC, and the confirmation of tax liability, interest, and penalties. The Tribunal allowed the condonation of delay, considered the service tax liability on the amount received by the appellant from APSRTC, and upheld the tax liability along with interest while setting aside the penalties imposed by the lower authorities based on a previous judgment.