2018 (10) TMI 166 - AT - Service Tax

CENVAT credit - duty paying invoices - invoices which have been issued from Kanpur - the head office was at Nashik, which did not have centralized registration - Held that - It is deemed fit to set aside the impugned order and remand the matter to the Original Adjudicating Authority to verify the said claim of the assessee - If the tax liability has already been discharged at Nashik in respect of services provided at Kanpur, the second time confirmation of demand against the appellant would not be justified - appeal allowed by way of remand.

Summary

Issues:
Demand of service tax confirmation under the category of Manpower recruitment/supply agency for the period from October 2010 to 2011-12.

Analysis:
The judgment addresses the issue of the demand of service tax amounting to ?95,89,932 confirmed against the appellant for the period from October 2010 to 2011-12 under the category of Manpower recruitment/supply agency. The appellant, a proprietary unit registered with the Service Tax Department at Nashik, raised a procedural concern regarding the invoices issued from Kanpur. The appellant had already included these invoices in the ST-3 return filed at Nashik and discharged the service tax liability there. Although the Nashik registration was not centralized and no separate registration was obtained for Kanpur, the appellant argued that this procedural lapse should not affect the discharge of tax liability. The Tribunal agreed with the appellant's contention and decided to set aside the impugned order, remanding the matter to the Original Adjudicating Authority for further verification. The Tribunal emphasized that procedural irregularities should not lead to the denial of substantive benefits to the assessee, especially when the tax liability had already been fulfilled at Nashik for the services provided at Kanpur. The Tribunal highlighted that reconfirming the demand for the same transactions included in the returns filed at Nashik would not be justified.

In conclusion, the Tribunal set aside the impugned order and instructed the Original Adjudicating Authority to conduct a denovo adjudication after verifying the appellant's claim regarding the discharge of tax liability at Nashik for the services provided at Kanpur. The judgment underscores the importance of ensuring that procedural lapses do not overshadow the fulfillment of tax obligations and that substantive benefits should not be denied based on such irregularities.