2010 (5) TMI 139 - AT - Service Tax

Penalty- Goods Transport Agency service- Demand of service tax of Rs.52,064/- together with interest and penalties imposed under Sections 76, 77 and 78 of the Finance Act, 1994 on the ground that the assessee was a recipient of Goods Transport Agency service, is contested by the assessees on the ground that they have availed services only from individual truck/lorry owners who are not liable to tax. Held that- the impugned order and remit the case to the adjudicating authority for fresh decision on examination of the documents to be filed by the assessees to support their contention on receipt of services only from individuals. The appeal is thus allowed by way of remand.

Summary

Issues:
Challenge to demand of service tax based on receipt of services only from individual truck/lorry owners.

Analysis:
The judgment deals with the challenge to a demand of service tax amounting to Rs.52,064/- along with interest and penalties under Sections 76, 77, and 78 of the Finance Act, 1994. The dispute arises from the contention of the assessees that they availed services solely from individual truck/lorry owners who are not subject to taxation. The assessees claim to have submitted vouchers before the lower appellate authority to support their argument, but the lower appellate authority found no evidence of such submission before them. The Tribunal notes a previous case where a similar demand was set aside, acknowledging services from individual truck/lorry owners. However, in the present case, the Tribunal observes a lack of documented evidence supporting the assessees' claim. Consequently, the Tribunal sets aside the impugned order and remits the case to the adjudicating authority for a fresh decision based on the examination of documents to be provided by the assessees. The Tribunal emphasizes the need for the assessees to have a reasonable opportunity to present their defense before a fresh order is issued.

In conclusion, the Tribunal allows the appeal by way of remand, emphasizing the importance of substantiating claims with proper documentation and providing the assessees with a fair opportunity to present their case. The judgment underscores the significance of evidentiary support in tax disputes and the procedural requirement for a thorough examination of relevant documents before making a decision.