9911796707
TMI Blog2018 (7) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... n the form of ledgers or invoices is required to prove that the value shown in the Profit and Loss statements is inclusive of the service tax element because the very statement says so. In fact it is that very statement which forms the basis for the show cause notice - the assessees are eligible for calculation of the differential tax reckoning the amounts shown in the Profit and Loss statements as inclusive of service tax. The demand of differential duty gets reduced correspondingly and so does any mandatory penalty imposed on them - it is a fit case to remand these cases to the original authority and do so. The Original Authority is directed to recalculate the differential duty payable and penalty, taking the amounts shown in the Profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Sec.78 and 77. The original authority had confirmed the demands and also imposed the penalties on the appellants. 4. Aggrieved, the appellants approached the Commissioner (Appeals) who rejected their appeals and upheld the Order-in-Original. The current appeals are against these Orders of the Commissioner (Appeals). 5. During personal hearing, the Learned Counsel for the appellants submitted that they have been paying service tax as applicable but evidently, there was some mistake resulting in under payment of the service tax. The departmental officers had taken the value of their services from their own Profit and Loss Accounts and sought to charge the tax accordingly. In the case of Sparsha Logistics, the total differential value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same amounts which are taken by the department as the value of services rendered (in the Profit and Loss accounts/ form 26- AS). The appellants had, in fact, raised this issue before the Learned Commissioner (Appeals) also who did not agree with their contentions in the following words: The appellants have also not produced any relevant invoices during the appellate proceedings. No prior submissions or evidences like copies of agreements, invoices have been furnished in support of their claim of reduced tax or to prove their entitlement to the benefit of cum-tax valuation in terms of Sec.67(2) of the Act, 1944. Even assuming that they were eligible for cum-tax valuation, I find that such relief cannot be granted in as much as actual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice as the values of services rendered and also show the corresponding breakup on the other side. The breakup shows the various components in which the amounts received were divided. These include various forms of expenses incurred by them with respect to those services as well as their profit and the service tax amounts. A plain reading of the Profit and Loss statement shows that the service tax receipts shown therein are inclusive of the service tax. I do not agree with the learned Commissioner (Appeals) that any additional evidence in the form of ledgers or invoices is required to prove that the value shown in the Profit and Loss statements is inclusive of the service tax element because the very statement says so. In fact it is that ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
