2012 (4) TMI 177 - AT - Service Tax

Assessee providing services under the Head, Consulting Engineering Service - SCN issued for default of payment service tax Assessee has submitted that the Department has determined the Service Tax liability on the gross receipt as shown in their Balance Sheet for the relevant period though they had filed the detailed break-up of the receipts shown in the Balance Sheet - Revenue submitted that the invoices and other documents/evidences against which the amount had been received, by the Appellant were not placed before the learned Commissioner in support of the claim that the services rendered during the relevant period were not consulting engineer services but comprises of various other services and non-taxable services - Held that - the entire demand has been raised on the basis of the gross receipt shown in the Balance Sheet considering the same as the gross taxable services attributable towards Consulting Engineering Services - we find that besides Consulting Engineering Services , the Appellant are registered with the Department for various other services, which have not been considered by the learned Commissioner in the impugned Order but they have not substantiated by way of adducing relevant documents/evidences before the Commissioner - the matter be remitted back to the Commissioner for re-consideration of all the issues raised earlier and raised for the first time before this Tribunal and also all the evidences/documents relevant to the case

Summary

Issues involved:
Application for waiver of pre-deposit of Service Tax and penalty under Section 78 of the Finance Act, 1994. Dispute regarding Service Tax liability on consulting engineering services provided by the appellant.

Analysis:
The appellant filed an application seeking waiver of pre-deposit of Service Tax amounting to Rs.18,01,19,044/- and the equivalent penalty imposed under Section 78 of the Finance Act, 1994. The Tribunal found that the appeal itself could be disposed of without the pre-deposit. The case involved a show cause notice issued to the appellant for not discharging Service Tax on consulting engineering services provided during 2003-04 to 2004-05. The demand of Service Tax was confirmed, and a penalty was imposed by the Commissioner. The appellant contended that the Department had determined the Service Tax liability based solely on the gross receipts from the Balance Sheet, without considering the detailed breakdown provided during adjudication. The appellant raised issues related to the applicability of Service Tax under consulting engineering services and the correctness of goods and materials deducted from the gross value. However, it was noted that some of these issues were not raised before the Commissioner initially.

The Revenue argued that the Commissioner had considered the details of receipts related to various activities submitted by the appellant during adjudication. The Revenue highlighted that the implications of the levy of Service Tax on works contracts and other issues were not raised before the Commissioner. Additionally, the invoices and documents supporting the claim that the services were not consulting engineering services were not provided during adjudication. After hearing both sides and examining the records, the Tribunal observed that the demand was solely based on the gross receipts from the Balance Sheet, overlooking the appellant's multiple registered services. It was noted that the appellant had not adequately substantiated their claims with relevant documents and evidence before the Commissioner. The Tribunal agreed with the Revenue that certain issues were raised for the first time before the Tribunal and needed to be reconsidered by the Commissioner. Consequently, the matter was remanded back to the Commissioner for a fresh consideration of all issues, with the appellant directed to submit a detailed reply and relevant evidence within three months. The Commissioner was instructed to decide the matter promptly, keeping all issues open. The appeal was allowed by way of remand, and the Stay Petition was disposed of. The operative part of the order was pronounced in court on 14.03.2012.