2018 (6) TMI 1014 - AT - Service Tax

Penalty u/s 73(3) of the FA - cum- tax benefits - Mandap Keeper Service - swimming pool service - Held that - Since the appellant have already deposited the substantial amount towards their service tax liability which has not been disputed by the ld. AR and since now the only issue involved is about the service tax liability qua the Mandap Keeper and swimming pool service therefore, in the interest of justice, the matter remanded to the Adjudicating authority for the limited purpose of reworking the demand, after hearing the appellant, confining to the issue of Mandap keeper and swimming pool service - appeal allowed by way of remand.

Summary

Issues:
- Discrepancy in service tax payments and taxable value shown in returns
- Demand of service tax, interest, and penalties
- Partial payment made by the appellant
- Request for remand to rework demand and penalty
- Cum-tax benefits and supporting documents
- Imposition of penalty under Section 73(3) of the Finance Act

Discrepancy in service tax payments and taxable value shown in returns:
The appellant, registered under service tax, faced a show cause notice for a difference in receipts and taxable value shown in returns. The Order-in-Appeal confirmed the demand, interest, and penalties. The appellant contended that substantial payments were made, and the issue was now limited to specific services. The appeal was remanded for reworking the demand concerning the Mandap Keeper and swimming pool service.

Demand of service tax, interest, and penalties:
The Order-in-Appeal re-assessed the service tax payable, imposed interest, and penalties under relevant sections of the Finance Act. The appellant made partial payments before and after the show cause notice. The appellant requested a remand for reworking the demand and penalties due to subsequent developments, focusing on specific service amounts.

Partial payment made by the appellant:
The appellant had paid a significant portion of the service tax liability before and after the show cause notice. The total amount paid by the appellant was highlighted, including interest and penalties. The appellant sought a reworking of the demand and penalties due to additional payments made towards specific services.

Request for remand to rework demand and penalty:
The appellant requested a remand for reevaluation of the demand and penalties in light of the payments made towards specific services. The issue was narrowed down to the amounts related to the Mandap Keeper and swimming pool service, emphasizing the need for a revised calculation based on the payments already made by the appellant.

Cum-tax benefits and supporting documents:
The appellant mentioned filing relevant documents but under the incorrect heading, leading to a misunderstanding regarding cum-tax benefits. The appellant clarified the error and sought consideration based on the documents provided. The importance of supporting documents for claiming cum-tax benefits was highlighted in the proceedings.

Imposition of penalty under Section 73(3) of the Finance Act:
The appellant expressed that they were not pressing the issue of penalty under Section 73(3) of the Finance Act. The focus shifted towards resolving the discrepancies related to specific services and recalculating the demand and penalties accordingly. The appeal was allowed for remand to address the limited issue concerning the Mandap Keeper and swimming pool service.