2014 (2) TMI 618 - AT - Service Tax

Rectification of mistake - Re-calculation of the Service Tax liability - Held that - there is an error apparent on the face of record, in as much as the Bench had recorded clearly that the appellant had contested the Service Tax liability on the basis of value to be considered as cum-tax. To that extent, we find that there is an error apparent on the face of record in our final order. In view of this, the said error needs to be rectified in this application. Accordingly, we allow the application for rectification of mistake to correct the error apparent on the face of record - Service Tax liability, if any, on the appellant as per our Final order, needs to be re-computed based upon the amounts which have been received by the appellant from M/s GSPC and also on the evidence which will be produced by the appellant before adjudicating authority - Partial rectification made.

Summary

Issues:
Rectification of mistake apparent on the face of the final order regarding Service Tax liability computation based on cum-tax value.

Analysis:
The appellant filed an application seeking rectification of a mistake in the final order related to the calculation of Service Tax liability based on the amount received from GSPC as cum-tax value. The appellant had clearly stated during the proceedings that they wished to re-calculate the Service Tax liability using the cum-tax value, which was duly recorded in the final order. However, no findings were given on this issue in the final order. The consultant for the appellant argued that the error on the face of the record should be rectified, and the order should be modified to re-compute the Service Tax liability based on the cum-tax value. On considering the submissions, the Tribunal found an error apparent on the face of the record as the appellant had contested the Service Tax liability on the basis of cum-tax value, which was not reflected in the final order. Therefore, the Tribunal allowed the application for rectification of the mistake.

On the merits of the case, the Tribunal noted that the appellant had been raising invoices on GSPC indicating the Service Tax payable, but they were only receiving the basic amount from GSPC, and sometimes not even that. The Tribunal concluded that the Service Tax liability, if any, on the appellant needed to be re-computed based on the actual amounts received from GSPC. The final order was modified to reflect this, and the appellant was directed to produce evidence before the adjudicating authority to support the re-computation of the Service Tax liability. The application for rectification of the mistake was disposed of accordingly.

In summary, the judgment addressed the rectification of a mistake in the final order concerning the computation of Service Tax liability based on cum-tax value. The Tribunal acknowledged the error in not providing findings on the appellant's submission regarding the cum-tax value and allowed the rectification application. Additionally, the Tribunal directed a re-computation of the Service Tax liability based on the actual amounts received by the appellant from GSPC, emphasizing the need for supporting evidence in this regard.