2019 (5) TMI 664 - AT - Service Tax

Demand of service tax - service for which the invoices has been raised by the appellant - HELD THAT - The appellant has not provided any service against the invoices for which the service tax has been demanded from the appellant. Moreover, the invoices in question are in the nature of Performa Invoices issued by the appellant and no service tax is payable on Performa invoices. No service tax is payable by the appellant for the invoices in question - demand set aside - penalty set aside - appeal allowed - decided in favor of appellant.

Summary

Issues:
Confirmation of service tax demand against the appellant for raised invoices.

Analysis:
The appellant, engaged in developing industrial areas, raised invoices for property transfer fees, extension fees, and leasing fees. The Revenue claimed service tax liability based on the invoices raised by the appellant. However, it was established that the appellant did not provide any service against the invoices in question. The invoices were deemed as Performa Invoices, for which no service tax is payable. Consequently, the demand for service tax against the appellant was set aside. The tribunal ruled that no penalty is imposable on the appellant in this case.

Conclusion:
The appellate tribunal, after hearing both parties, found that the appellant had not provided any service against the invoices for which service tax was demanded. As the invoices were determined to be Performa Invoices, no service tax liability was applicable. Therefore, the demand for service tax against the appellant was dismissed, and no penalty was imposed. The tribunal set aside the impugned order and allowed the appeal with any consequential relief.