2010 (7) TMI 246 - AT - Service Tax

Payment of Service Tax - Assessee contended that said demand was raised on amount shown as receivable in balance sheet whereas it had already discharged service tax on amount realized. Held that - The question of penal action against the assessees is also to be considered afresh after working out tax liability. The impugned order is set aside and the appeal is allowed by way of remand.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellants in contesting a service tax demand of Rs. 59,183. The case is remitted to the adjudicating authority for considering the discrepancy in the amount collected by the assessees and the figure adopted by the department for determining tax liability. Penalties against the assessees are to be reconsidered after calculating the tax liability. The impugned order is set aside, and the appeal is allowed for remand.