2021 (3) TMI 107 - AT - Service Tax

Calculation of Service Tax - appellant claimed that they had paid much more Service Tax than required to be paid by them and such excess payment of Service Tax is actually refundable on final adjudication - HELD THAT - The appeal is allowed by way of remand to the original adjudicating authority, who shall look into the evidence and after hearing the appellant, pass a reasoned order. The appellant is also directed to appear with their representation and all evidences they wish to rely which they have filed earlier or they want to produce now before the authority. The appellant is directed to appear before the adjudicating authority in the third week of March 2021 and seek opportunity of hearing accordingly.

Summary

Issues Involved:
1. Proper adjudication of Service Tax liability on gross turnover by the appellant.

Analysis:
The judgment by the Appellate Tribunal CESTAT KOLKATA involved the issue of proper adjudication of Service Tax liability on the gross turnover by the appellant, a provider of telecom services registered with the Department. The appellant contended that only a part of their gross turnover was taxable under the provisions of Service Tax, while some parts were not taxable. They argued that the adjudicating authority had demanded tax on the entire gross turnover without considering the evidence presented by the appellant. The appellant also highlighted discrepancies in the taxable value declared to the audit team and in the ST-3 returns for the relevant period. They claimed that different services were taxable at different rates and submitted a calculation chart reflecting the taxable value, asserting that they had paid more Service Tax than required. The Tribunal had previously remanded the matter for proper adjudication after considering the evidence and hearing the appellant.

The Tribunal allowed the appeal by way of remand to the original adjudicating authority, directing them to examine the evidence and pass a reasoned order after hearing the appellant. The appellant was instructed to appear with their representation and all evidences they wished to rely on, whether previously filed or newly produced. They were required to appear before the adjudicating authority in the third week of March 2021 and seek an opportunity for a hearing accordingly. Due to the substantial volume of documents and books of accounts involved, the adjudicating authority was advised to obtain an Audit Report as per the provisions of section 14AA of the Central Excise Act, 1944. The appeal was thus allowed by way of remand, providing the appellant with an opportunity for a fair adjudication process.

In summary, the judgment focused on ensuring a fair and thorough examination of the appellant's Service Tax liability on their gross turnover, emphasizing the need for proper consideration of evidence and a reasoned order by the adjudicating authority. The Tribunal's decision to remand the matter aimed to facilitate a comprehensive review of the case, allowing the appellant to present all relevant evidences and seek a just resolution to the dispute.