2006 (10) TMI 5 - AT - Service Tax

Service Tax Cable operator Demand Chartered Accountants certificate and balance sheet not considered as additional evidence for determination of receipts of cable operator Demand correctly confirmed on amount of Rs. 3 lakh received as subscription

Summary

Issues:
Appeal against order setting aside partial demand and penalty but upholding part of the penalty as adjudged by the adjudicating authority.

Analysis:
The appeal was filed against an order that set aside partial demand and penalty while upholding some part of the penalty as determined by the adjudicating authority. The respondent, a cable operator, defaulted in paying service tax. The Revenue issued a show cause notice based on evidence provided by the proprietor regarding subscription amounts collected. The adjudicating authority confirmed the demand and imposed penalties. On appeal, the Commissioner (Appeals) partially allowed the appeal, confirming the demand and upholding the penalty.

The Revenue contended that the Commissioner (Appeals) should not have accepted the balance sheet produced by the respondent as additional evidence, arguing that no new evidence should be permitted at the appellate stage. The respondent argued that the balance sheet and chartered accountant certificate were not presented as additional evidence but to support the proprietor's statement regarding the amount received.

The Tribunal examined the proprietor's statement, which indicated monthly subscriptions totaling Rs. 3 lakhs for the year. The balance sheet and chartered accountant certificate corroborated this amount as subscription income. The Tribunal disagreed with the Revenue's argument that the balance sheet was new evidence, as it was used to substantiate the figures mentioned in the proprietor's statement.

The Tribunal concluded that the respondent had the right to produce supplementary evidence to support their claims, and since the confirmed demand was not appealed against, it was upheld. The Tribunal found no merit in the Revenue's case against the Commissioner (Appeals)'s reasoned order and dismissed the Revenue's appeal.

In summary, the Tribunal upheld the demand based on the evidence provided by the respondent to support the proprietor's statement regarding subscription amounts collected. The appeal filed by the Revenue was dismissed, affirming the Commissioner (Appeals)'s decision.