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TMI Blog2023 (8) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... y and, therefore, imposed the penalty under Section 77 and 78 of the Act - The order is completely silent as to any findings of fact on fraud, collusion or wilful misstatement or suppression of facts or violation of provisions of the Act or the Rules. The impugned order is unsustainable and deserves to be set aside - matter remanded back to the Adjudicating Authority to decide the issues on merits as well as on extended period of limitation and on interest and penalty afresh after recording reasons in support thereof - appeal allowed by way of remand. - HON BLE MS. BINU TAMTA, MEMBER (JUDICIAL) And HON BLE MS. HEMAMBIKA R. PRIYA, MEMBER (TECHNICAL) Shri Bimal Jain, Advocate for the appellant Shri Rohit Issar, Authorised Representative for the respondent ORDER BINU TAMTA : The present appeal has been filed challenging the Order-in-Original No.04/2015-16 dated 15.07.2015, whereby the Commissioner, Central Excise, partly confirmed the demand under the show cause notice. 2. The appellant is registered with the Service Tax Department and is providing services viz. Management Consultancy and Scientific and Technical Consultancy covered under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Confederation of Indian Industry ( CII ) and Federation of Indian Chamber of Commerce Industry ( FICCI ), registered under Section 12AA of Income Tax Act, 1961 ( the Income Tax Act ). 4.2 Keeping in view the mission; Quality for National Well Being , QCI is playing a pivotal role at the national level in propagating, adoption and adherence to quality standards in all important spheres of activities including education, healthcare, environment protection, governance, social sectors, infrastructure sector and such other areas of organized activities that have significant bearing in improving the quality of life and well-being of the citizens of India. 4.3 To achieve the stated objective, QCI is conducting Quality Conclave and Seminars and also advertise Quality Improvement Standards at various events conducted by the other organizations and give accreditation to Management System Certification Bodies in accordance with the International Standard ISO/IEC Guide 62 and 66 supported by International Accreditation Forum ( IAF ) and operate accreditation programme for healthcare organization. Further, QCI gets grants from the Government of India for the same. 5. The present a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar Amount Received (in Rs.) 1. 2009-2010 44,43,800 2. 2010-2011 56,05,205 3. 2011-2012 64,69,634 Grant Total 1,65,18,639 6.7 I find that the notice have not disputed their liability for payment of service tax under Convention Services. They have only disputed the value of taxable services. At the time of personal hearing held on 20.01.2015, the notice themselves disclosed that they were now paying service tax on Convention services. I am of firm view that the notice are liable to pay service tax on taxable value of Rs.1,65,18,639/- under Convention Services. 6. So far as the Sponsorship Services were concerned, the submission of the appellant was that expenditure shown in the balance sheets on Sponsorship/Awareness Programme/Seminar include various expenditures, which were actually not related to the Sponsorship/Awareness Programme but were clubbed together only for accounting purposes. He referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are a Society , registered under the Societies Registration Act . The learned Counsel citing the decisions of the Tribunal and the Apex Court contended that the impugned order is a non-speaking order and, therefore, needs to be set aside. 8. Learned Authorized Representative for the Revenue has opposed the present appeal referring to the Order-in-Original, wherein it is specifically noted that the appellant had not disputed the service tax liability for either of the two services viz. Convention Service or of Sponsorship Service and had submitted that during the personal hearing the appellant themselves disclosed that they were now paying service tax on the services. Referring to the earlier show cause notices dated 24.10.2008, 20.04.2012 and 31.03.2013, he submitted that the issues involved were totally different as they covered the services under the category of Technical Inspection and Certification and, therefore, the extended period of limitation has been rightly invoked. 9. Having perused the impugned order, we are of the considered view that the appellant is right in submitting that the order under challenge is a non-speaking order as no reasoning is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the High Court ought to have set forth its reasons, howsoever brief in its order, indicative of an application of its mind; all the more when its order is amenable to further avenue of challenge. The absence of reasons has rendered the High Court order not sustainable. Similar view was expressed in State of U.P. v. Battan and Ors. [JT 2000 (8) SC 50; 2001 (10) SCC 607J. About two decades back in State of Maharashtra v. Vithal Rao Pritirao Chawan [AIR 1982 SC 1215] the desirability of a speaking order while dealing with an application for grant of leave was highlighted. The requirement of indicating reasons in such cases has been judicially recognized as imperative. The view was reiterated in Jawahar Lal Singh v. Naresh Singh and Ors. [JT 1987 (1) SC 388; 1987 (2) SCC 222]. Judicial discipline to abide by declaration of law by this Court, cannot be forsaken, under any pretext by any authority or Court, be it even the highest Court in a State, oblivious to Article 141 of the Constitution of India, 1950 (in short the Constitution ). 8. Reason is the heartbeat of every conclusion, and without the same it becomes lifeless. (See Raj Kishore Jha v. State of Bihar and Ors. [JT 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Devkrupa Ship Breaking v. Union of India decided on 30- 11-2005, this Court held that : 6. It is thus apparent on plain perusal of the impugned order that CESTAT, which is the final fact finding authority, ought to have taken due care and shown greater consideration to the case than is shown by the order under challenge. As laid down by the Apex Court in the case of Standard Radiators Pvt. Ltd. (supra) It is expected that it will discuss the facts in some detail and not cursorily and come to briefly stated conclusions on that basis . 7. The impugned order unfortunately does nothing of that sort as already noticed hereinbefore. The entire order is silent as to what were the contentions raised before it by both the sides, what were the material facts for decision, what was the evidence pro and contra in relation to the said issue and what was the finding of facts on each of the contentions raised before CESTAT by both the sides. During course of hearing, a faint attempt on behalf of the respondent authority was made to submit that once the Tribunal accepts the findings recorded by Commissioner (Appeals) it is not necessary for it to reiterate the same and hence no faul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade taxable with effect from 16.07.2001 and 01.05.2006 respectively but the appellant failed to get these services included in their Registration Certificate and also failed to declare them in the ST-3 Returns. On that basis, he concluded that the appellant willfully suppressed the information with an intent to evade service tax liability and, therefore, imposed the penalty under Section 77 and 78 of the Act. We are constrained to say that the Adjudicating Authority has not even discussed the basic ingredients for invoking the extended period of limitation. The order is completely silent as to any findings of fact on fraud, collusion or wilful misstatement or suppression of facts or violation of provisions of the Act or the Rules. 13. The learned Counsel for the appellant has referred to the decision of the Apex Court in Pahwa Chemicals Pvt. Ltd. V Commissioner of Central Excise, Delhi - 2005(189)ELT 257(SC) to say that there is mis-declaration or wilful suppression, there must be some positive act on the part of the party. Relevant para is quoted below: 3. It is settled law that mere failure to declare does not amount to willful mis-declaration or willful suppression. Ther ..... 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