2009 (12) TMI 433 - AT - Service Tax

Jurisdiction Adjudication order by deputy Commissioner Indore on short payment of Service Tax by Trivendrum office held as without jurisdiction. Held that - Separate registration ignored by adjudicating authority to hold that service provided in individual capacity and adjustment of excess and short payment by any office permissible. Matter remanded to adjudicating authority to segregate Service tax liability relating to different jurisdictions and adjudicate matter relating to his jurisdiction.

Summary

Issues:
1. Appeal against order of Commissioner (Appeals) regarding Service tax payment jurisdiction.
2. Discrepancy in short/excess Service tax payments among different offices of the Respondent.
3. Adjudication authority's decision on liability adjustment based on individual office service provision.
4. Setting aside the appellate order and remanding the matter to the adjudicating authority for segregation of Service tax liability.

Analysis:
1. The appeal was filed by the Revenue against the order of the Commissioner (Appeals) concerning the jurisdiction of Service tax payment. The Commissioner held that any short payment by the Trivendrum office should be handled by the respective authority and not by the Deputy Commissioner in Indore. This was deemed as an erroneous exercise of jurisdiction, leading to the conclusion that the adjudication on short payment by the Trivandrum office was beyond jurisdiction.

2. The appellate order highlighted discrepancies in short and excess Service tax payments across different offices of the Respondent, including Indore, Trivandrum, Vadodara, and Bhopal. The Adjudicating Authority disregarded the separate registration status of each office and concluded that since the Respondent provided services in an individual capacity, the liability discharge by one office could be adjusted against the total liability.

3. The learned DR supported the adjudication order, emphasizing the jurisdictional aspect. The Tribunal, after hearing the Revenue, concluded that any adjudication made by the Trivandrum authority within its jurisdiction against the Respondent should not be questioned. The matter was directed to go back to the adjudicating authority to segregate the Service tax liability concerning different jurisdictions and to adjudicate within their respective jurisdiction.

4. The Tribunal set aside the impugned order and remanded the matter to the adjudicating authority with specific observations. There was a concern raised regarding the possibility of the assessee seeking a refund due to the show cause notice being quashed. To protect the Revenue's interest, the adjudicating authority was tasked with informing the appropriate jurisdictional authority about the disputed amount and to ensure proper adjudication following due process of law if necessary.

In conclusion, the judgment addressed the jurisdictional issues related to Service tax payments by different offices of the Respondent, emphasizing the need for segregation and proper adjudication within the respective jurisdictions. The decision aimed to ensure fairness and compliance with the law while safeguarding the Revenue's interests.