2018 (8) TMI 1510 - AT - Service Tax

Valuation - service tax collected separately over and above the service charges from their clients - includibility - case of appellant is that related invoice and documents in support of their claim had indeed not been produced at the stage of adjudication - Held that - Interest of justice would be served in this matter by remanding the issue relating to the demand of service tax in relation to the Chennai Branch of the appellants for de novo adjudication. Appellants shall produce all the necessary proof to support their claim that no tax would arise in respect of their Chennai activities also - appeal allowed by way of remand.

Summary

Issues:
1. Whether the appellants are liable to pay service tax for services provided by the Chennai Branch.
2. Whether the demand of service tax for the Chennai Branch should be upheld.
3. Whether the case should be remanded for de novo adjudication.

Analysis:
1. The appellants, engaged in maintenance services, were alleged to have collected service tax but not paid it. The department issued a show cause notice proposing recovery of service tax liability, including an amount for the Pune Branch. The Commissioner found the Pune property income exempt but confirmed the demand for the Chennai Branch due to lack of documentation.

2. During the hearing, the appellant's advocate admitted that supporting documents were not produced during adjudication. However, they assured the availability of necessary proof and requested a remand for submission. The appellant also requested a time frame for the de novo adjudication due to the case's age.

3. The Advocate for the Respondent supported the impugned order but had no objection to remanding the matter. After hearing both sides, the Tribunal decided that justice would be served by remanding the issue for de novo adjudication. The appellants were instructed to provide all necessary proof for the Chennai activities. The Tribunal directed the completion of de novo adjudication within three months from the date of the order, allowing the appeal by way of remand.