9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 1024 - AT - Service TaxShort payment of service tax - it was alleged that the appellant had not declared actual amount realized under the category of Business Auxiliary Service in their ST-3 returns in comparison with Balance Sheet for the period 2009-10 to 2011-12 - Section 84(1) of Finance said Act - HELD THAT - The amended Rule 9 of Point of Taxation Rules, 2011 as amended on 01.04.2011 overrules the other Rules and specifically applies to the case in hand and as per the said Rule, taxpayer has given an option to pay tax on receipt basis where provision of services is completed on or before 30th day of June, 2011 or where the invoices issued upto 30.06.2011. Admittedly, in this case, the appellant has paid service tax on receipt basis for invoice issued upto 30.06.2011, which is in compliance with Rule 9 of Point of Taxation Rules, 2011 and on billing basis for the bill raised on or after 01.07.2011 as per Rule 3 of Point of Taxation Rules, 2011. Thus, the appellant has correctly discharged its service tax liability of ₹ 2,66,601/-. Penalty u/s 78 of FA - HELD THAT - Since there had been regular amendments and changes in Rules during the period and since the appellant have paid the tax alongwith applicable interest, which is also almost equal to the amount of demand, it is my considered view that no penalties should be imposed and accordingly, the penalty is set aside. Appeal allowed - decided in favor of appellant.
Issues involved:
- Alleged non-declaration of actual amount realized under 'Business Auxiliary Service' in ST-3 returns - Short payment of Service Tax and wrongful Cenvat Credit utilization - Recalculation of demand for the year 2011-12 by the Adjudicating Authority - Review of the Order-in-Original by the Principal Commissioner - Appeal filed by the Revenue against the Order-in-Original - Discrepancies in tax liability determination for 'Business Auxiliary Service' - Application of Point of Taxation Rules, 2011 - Transitional provisions and tax payment basis - Dispute over penalty imposition under Section 78 of the Finance Act, 1994 Analysis: 1. The case involved an investigation by the Service Tax Department, leading to a Show-Cause Notice (SCN) alleging non-declaration of actual amounts under 'Business Auxiliary Service' and wrongful Cenvat Credit utilization, resulting in short payment of Service Tax. 2. The Adjudicating Authority recalculated the demand for the year 2011-12, considering the 'Closing Debtors' figure, which was not initially included in the SCN. 3. The Principal Commissioner reviewed the Order-in-Original and directed an appeal, citing discrepancies in tax liability determination and the application of Point of Taxation Rules, 2011. 4. The Revenue's appeal led to the modification of the Order-in-Original, confirming the demand of Service Tax for the appellant. 5. The appellant argued that they paid tax based on the Point of Taxation Rules, 2011, and provided documents supporting their tax payment calculations for the period in question. 6. The Tribunal analyzed the Point of Taxation Rules, 2011, and concluded that the appellant correctly discharged their service tax liability based on the rules, setting aside the penalty under Section 78 of the Finance Act, 1994. 7. The Tribunal allowed the appeal, providing consequential relief to the appellant, based on the correct application of the Point of Taxation Rules, 2011 and the payment of service tax as per the rules.
|
