2019 (11) TMI 1165 - AT - Service Tax

Supply of tangible goods service - contract for transportation of goods - issue of consignment note - HELD THAT - The learned Adjudicating Authority has observed that the party is creating confusion and their both versions are far away from the truth. Further, The party has not contradicted the allegation in respect Supply of Tangible Goods instead they have tried to establish that they are not liable to pay Service Tax under GTA service which is not a matter of dispute in the case. The matter needs to be remanded to Original Authority with directions to Original Authority to give appellant an opportunity to present their case along with all admissible documents - Appeal allowed by way of remand.

Summary

Issues:
1. Appeal against Order-in-Original dated 22 March, 2018 passed by Commissioner, CGST & Central Excise, Lucknow regarding demand of Central Excise Duty under the category of 'supply of tangible goods' raised against the appellant.

Analysis:
The appellant was issued a show cause notice based on information from the Income Tax Department, alleging a demand of Central Excise Duty of around ?2.42 crore under the category of 'supply of tangible goods'. The appellant contended that they were providing transportation services, not hiring out tangible goods. The appellant transported cars for Tata Motors and petroleum products for Indian Oil Corporation, with consideration based on distance covered. Additionally, the appellant operated as a rent-a-cab service for employees of I.T.I. Ltd., discharging service tax liability. The appellant also received consideration for providing buses to transport students, exempted under a specific notification.

The Adjudicating Authority observed discrepancies in the appellant's submissions and documents, noting that the appellant failed to provide sufficient evidence to support their claims. The Authority found the appellant's contentions regarding consignment notes and service tax liability unconvincing. Consequently, the Authority confirmed the demand in the Order-in-Original, imposing penalties on the appellant.

Upon hearing both sides and reviewing the record, the Appellate Tribunal set aside the impugned order and remanded the matter to the Original Authority. The Tribunal directed the Original Authority to provide the appellant with an opportunity to present their case with all admissible documents and instructed the appellant to cooperate. The Tribunal found the matter suitable for re-adjudication, allowing the appeal by way of remand.

In conclusion, the Tribunal's decision to remand the matter for re-adjudication signifies a procedural step to allow the appellant a fair opportunity to present their case with proper documentation and cooperation, emphasizing the need for a thorough review of the facts and evidence before reaching a final decision.