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TMI Blog2022 (10) TMI 734X X X X Extracts X X X X X X X X Extracts X X X X ..... priate taxes had been discharged. CERA is the field arm of the Comptroller and Auditor General (CAG) entrusted with responsibilities in accordance with the Constitution. The correspondence between the revenue administration and the audit arm constitutes inter-departmental interface on objections raised by the latter with a hierarchy of consequences upon non-acceptance - Most often, the issue of show cause notice in furtherance of objections is sufficient satisfaction as far as the audit arm is concerned. A show cause notice is issued under the appropriate statutory empowerment and is taken to its logical conclusion, independent of the source leading to the issue of the notice, in adjudication proceedings. Such proceedings are governed by st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al of Revenue, against order-in-original no. 38 to 42/STC-1/SKS/14-15 dated 9th September 2015 of Principal Commissioner of Service Tax-I, Mumbai dropping the proposal in five show cause notices for recovery of Rs.560,23,36,716 on premium received towards marine policy for the period from 2006-07 to 2013-14 has been articulated in the grounds of appeal approved by the competent reviewing authority thus 3.5 , it is observed that the Ld. Adjudicating Authority has not addressed the merits of the issue at all and instead got misled by the circumventing replies of the noticee. The Ld. Adjudicating Authority erred in not appreciating the crux of the allegation contained in Show Cause Notice as recorded in para 2 of the Show Cause Notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mise that circumvented the crux of the Show Cause Notices. Such an O-i-O therefore is neither a speaking one nor legally sustainable. 3.7 Since the Ld. Adjudicating Authority has dropped the demand in a rather cavalier manner, the issues pertaining to interest and penal liabilities have been given a go by which would also need to be considered while determining the liability in terms of the Show Cause Notice. 3.8 The adjudicating authority has erred in not appreciating the facts and circumstances in this most relevant perspective. This has resulted in the order-in-original passed by him as neither proper nor legally sustainable and hence deserves to be set aside. 2. Learned Authorised Representative took us through the rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto LAR or SOF and therefore it is evident that CERA is in agreement with the department s view. Therefore, I am deciding the case based upon the records available and noticee s reply. 4. Noting that the series of notices includes that dated 4thOctober 2012 for Rs.7,86,444 as well as for Rs.78,56,57,284 dated 4th December 2012, with the former subsumed in the latter, it was held that only the later notice would need to be adjudicated. 5. The adjudicating authority has examined the breakup of the premium on marine policy received by the respondent herein for 2011-12 and has conclusively arrived at the finding that, barring the policies that are exempt from taxation, tax has been duly discharged. The grounds of appeal contain no co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have accepted the stand of the service tax authorities that appropriate taxes had been discharged. CERA is the field arm of the Comptroller and Auditor General (CAG) entrusted with responsibilities in accordance with the Constitution. The correspondence between the revenue administration and the audit arm constitutes inter-departmental interface on objections raised by the latter with a hierarchy of consequences upon non-acceptance. Most often, the issue of show cause notice in furtherance of objections is sufficient satisfaction as far as the audit arm is concerned. A show cause notice is issued under the appropriate statutory empowerment and is taken to its logical conclusion, independent of the source leading to the issue of the notice, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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