2023 (9) TMI 1194 - AT - Service Tax

Principles of natural justice - non-consideration by the Original Authority of Audited Final Accounts in arriving at the final tax liability - HELD THAT - Reliance placed in the judgement of a Coordinate Bench of this Tribunal in the case of M/S. CANARA BANK VERSUS CST, BANGALORE 2012 (6) TMI 274 - CESTAT, AHMEDABAD which came to be delivered after the issue of the impugned order - it is deemed proper to remand the matter back to the Original Authority to examine all the issues involved on facts and law and pass a speaking order afresh. The learned Commissioner shall follow the principles of natural justice and afford a reasonable and time bound opportunity to the appellant to state their case both orally and in writing if they so wish, before issuing a speaking order in the matter - the appeal is restored before the learned Commissioner for a decision on merits - appeal disposed off.

Summary

Issues involved:
The appeal filed by State Bank of India against the Order in Original passed by the Commissioner of Central Excise, Chennai regarding the levy of service tax on commission amount received from Employees Provident Fund Organisation (EPF).

Summary:
The appellant, a registered entity providing Banking and Other Financial Services, was investigated for not paying service tax on commission received from EPF. The appellant operates client accounts in relation to EPF accounts and receives commission from client organizations. A Show Cause Notice was issued proposing service tax demand for a specified period, which was confirmed by the adjudicating authority along with penalties. The appellant contended they were acting as a statutory agent of the Reserve Bank of India and thus exempt from paying tax, citing a similar case precedent. The Tribunal found the appellant did not contest the taxability of the commission but sought a re-examination based on a recent judgment. The matter was remanded to the Original Authority for a fresh decision, emphasizing principles of natural justice and expeditious resolution.

Decision:
The Tribunal set aside the impugned order and restored the appeal before the Commissioner for a decision on merits, directing a re-examination considering all issues involved on facts and law. The Commissioner was instructed to provide a reasonable opportunity for the appellant to present their case and issue a speaking order within ninety days.