2023 (11) TMI 309 - AT - Service Tax

Recovery of service tax - non-production of Chartered Accountant s certificate to satisfy the department that the duty is being demanded for the second time or that they have paid duty on the value of reimbursements received by them - HELD THAT - Since, the appellant through its Advocate submits that the desired documents are available for verification, it is opined that the matter should go back to the original authority for verification of the records/ documents and for passing of the adjudication order accordingly. The matter is remanded back to the original authority for the limited purpose of examination of the records/documents with regard to the confirmation of service tax demand of Rs.84,12,507/- confirmed in the impugned order as referred above and for passing of the adjudication order on the basis of the available records - Appeal allowed by way of remand.

Summary

Issues:
The case involved the confirmation of service tax demand, compliance with previous tribunal orders, submission of required documents, and the authority's decision-making process.

Confirmation of Service Tax Demand:
The Tribunal remanded the matter back to the original authority for examination of the reconciliation statement and Chartered Accountant's certificate to determine the service tax liability. The original authority confirmed an amount of Rs.84,12,507 as proposed for recovery for specific periods, dropping the balance amount of demand for other periods. Interest demand and penalties were also confirmed under the Finance Act, 1994.

Compliance with Previous Tribunal Orders:
The original authority complied with the Tribunal's order by considering the available documents, including the reconciliation statement and certificate issued by the Chartered Accountant. The authority confirmed the demand based on the records submitted within the specified timeframe, while the balance demand was dropped due to non-submission of records as required.

Submission of Required Documents:
The appellant failed to submit the required documents within the specified time frame, leading to the confirmation of the adjudged demands by the original authority. However, the appellant claimed to have the reconciliation statement and Chartered Accountant's certificate available for verification. As a result, the matter was remanded back to the original authority for verification of these documents and passing a fresh adjudication order based on the available records.

Decision-Making Process:
The impugned order was set aside, and the matter was remanded for the limited purpose of examining the records/documents related to the confirmed service tax demand. The appellant was directed to cooperate with the adjudication proceedings and granted a personal hearing before the fresh adjudication order was passed. The appeal was allowed by way of remand for further examination and decision-making by the original authority.