2018 (11) TMI 528 - AT - Service Tax

Cable Operator Service - demand for the period 1st April 2006 to 30th Sept. 2010 - short payment of Service Tax - Held that - The appellant had evidently paid the substantial service tax and also paid the balance service tax along with interest, amounting to ₹ 18,06,665/- on or before 12th April 2007 for the period 2006-2007 and on 6th June 2011 for the period 2007-2008. We further find that the said amount have been adjudicated and appropriated in the impugned order. Period from 1st April 2008 to 30th Sept. 2010 - Held that - The appellants have produced copy of their bank statement, which shows Nil credit during this period. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Whether the appellant was rightly demanded service tax for the period 1st April 2006 to 30th Sept. 2010 along with penalties.

Analysis:
The judgment by the Appellate Tribunal CESTAT New Delhi involved the issue of service tax demand on the appellant for the period from 1st April 2006 to 30th Sept. 2010. The appellant had paid the admitted taxes for the years 2006-2007 and 2007-2008, with some demand of tax short paid on the service provided as 'cable operator distribution (BAS) service. The appellant had paid a substantial service tax amount along with interest for the disputed period, which was adjudicated and appropriated in the impugned order. The appellant argued that their business had closed during the financial year 2007-2008 due to the demolition of their business premises by the Municipal Corporation of Delhi. They provided evidence such as a copy of the High Court order and bank statements showing Nil credit during the relevant period. Based on the facts presented, the Tribunal held that the appellant was not liable for service tax for the period after 1st April 2008. For the period before 1st April 2008, the Tribunal found that the appellant had paid the service tax along with interest before the issuance of the show cause notice or in close proximity to it. Consequently, the Tribunal allowed the appeal, set aside the impugned order, and waived all penalties, granting the appellant consequential benefits in accordance with the law.

This judgment showcases a detailed analysis of the appellant's tax liability for the specified period, considering the payments made, the closure of the business, and the documentary evidence provided by the appellant. The Tribunal carefully evaluated the facts and circumstances, ultimately ruling in favor of the appellant based on the lack of liability for service tax post-April 2008 and the timely payment of taxes for the preceding period. The decision highlights the importance of substantiating claims with appropriate documentation and the significance of timely compliance with tax obligations to avoid penalties and adverse judgments in tax matters.