2007 (8) TMI 262 - AT - Service Tax

In revision order comm..(A) have confirmed demand for higher extent enhancement of demand - We find that the Order-in-Original has been set aside by the Commissioner (A) while passing remand order, therefore, the Revision Order does not stand to scrutiny - same is required to be set aside and the matter is remanded to Original authority for de novo consideration - Original Authority shall consider the matter afresh in the light of the directions given by Commissioner (A) in Order in Appeal

Summary

Issues:
1. Pre-deposit of Service Tax amount along with interest and penalty.
2. Review of Order-in-Original by Commissioner (A) and subsequent revision by Commissioner of Central Excise.
3. Claim of exemption from Service Tax based on a contract funded by World Bank.
4. Appeal against Order-in-Original and remand for de novo consideration.
5. Impugned Revision Order enhancing Service Tax amount.
6. Argument for setting aside the Revision Order and remanding the matter to the Original Authority.

Analysis:
1. The appellant was directed to pre-deposit a Service Tax amount of Rs. 9,75,508/- along with interest and penalty per day until the duty amount is paid as per the Order-in-Revision arising from Order-in-Original passed by the Assistant Commissioner of Central Excise.

2. The Commissioner (A) reviewed the Order-in-Original and remanded the matter for de novo consideration due to inadequacies in examining the exemption claim and other parameters. The Commissioner of Central Excise revised the Order-in-Original, increasing the Service Tax amount to Rs. 9,75,508/- along with interest and penalty.

3. The appellants had claimed exemption from Service Tax based on a contract for a World Bank-funded program. The Commissioner (A) found the Order-in-Original lacking in legal correctness and remanded the matter for a fresh examination.

4. An appeal was filed against the Order-in-Original, leading to a remand by the Commissioner (A) for de novo consideration with specific directions to the Original Authority to reassess the case thoroughly.

5. The Revision Order increased the Service Tax amount, which was challenged by the appellant. The Tribunal noted that since the Order-in-Original had been set aside by the Commissioner (A), the Revision Order was not sustainable. The matter was remanded to the Original Authority for fresh consideration.

6. The appellant argued for setting aside the Revision Order and remanding the matter to the Original Authority, which the learned JDR agreed with. The Tribunal directed the Original Authority to reconsider the case in line with the Commissioner (A)'s directions and decide within four months.

This comprehensive analysis covers the issues raised in the legal judgment, detailing the events leading to the Tribunal's decision to remand the matter for fresh consideration by the Original Authority.