2019 (1) TMI 1433 - AT - Service Tax

Evasion of service tax - Non-production of supporting documents - no proper registration certificate obtained - conditions for export of services not fulfilled - suppression of taxable value - service tax on import of service not paid - CENVAT Credit wrongly availed - the impugned demand is raised on the ground that the appellant had not furnished any supporting evidence in the form of documents - Held that - The appellant submits that they had furnished all such necessary documents as well as the reconciliation statements in this regard - the matter has to be adjudicated afresh by the adjudicating authority since he has not given any finding on the documentary evidences furnished nor has he denied the production of such evidences. Penalty - Held that - The issue involved is undoubtedly an interpretational one and the appellant had also submitted sufficient documentary evidences in its support - there is no scope for levying any penalty, for which reason the penalty is deleted. Appeal allowed in part and part matter on remand.

Summary

Issues:
1. Appeal against Order-in-Appeal No. 172/2017 dated 26.07.2017 passed by the Commissioner of G.S.T. & Central Excise, Coimbatore.
2. Allegations of non-compliance with registration, export conditions, tax payment, and CENVAT Credit.
3. Confirmation of Service Tax demand and recovery of wrongly availed Credit.
4. Appeal before the first appellate authority and subsequent rejection.
5. Lack of findings on documentary evidence.
6. Request for de novo adjudication.
7. Interpretational issue regarding penalty imposition.
8. Partial allowance of the appeal.

Analysis:
The appeal was filed against the Order-in-Appeal No. 172/2017 dated 26.07.2017 passed by the Commissioner of G.S.T. & Central Excise, Coimbatore, concerning the period from April 2009 to March 2014. The appellant was engaged in providing taxable services under various categories. Allegations included non-compliance with registration, export conditions, tax payment, and wrongly availed CENVAT Credit. A Show Cause Notice was served on the appellants on 17.10.2014, leading to the confirmation of Service Tax demand and recovery of wrongly availed Credit by the Original Authority. The Commissioner (Appeals) upheld the Order-in-Original, prompting the appellant to appeal before the forum.

During the hearing, the appellant's consultant stated that all necessary documentary evidence and reconciliation statements were submitted in response to the Show Cause Notice. The consultant expressed willingness for the matter to be remanded for fresh adjudication due to the non-speaking nature of the impugned Order. The Revenue's representative agreed to de novo adjudication as there were no findings on the documents provided by the appellant. The Member (Judicial) noted the lack of findings in the impugned Order regarding the documentary evidence submitted by the appellant. In the interest of justice, it was decided that the matter should be adjudicated afresh by the adjudicating authority to pass a speaking Order after considering all submissions and documents.

The issue at hand was deemed interpretational, and the appellant had presented sufficient documentary evidence in support of their case. Consequently, the Member (Judicial) concluded that there was no basis for levying a penalty, leading to the deletion of the penalty. The appeal was treated as partly allowed based on the above considerations, with the operative part of the order pronounced in open court.