9911796707
TMI Blog2025 (4) TMI 1334X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,722/- on the appellant on account of alleged wrong availment of Cenvat credit as per Rule 6 read with Rule 14 of Cenvat Credit Rules, 2004 CCR, 2004 read with the proviso to section 73 (1) of the Finance Act, 1994 Finance Act. She also ordered recovery of interest under section 75 of the Finance Act and imposed penalties under Sections 76 and 78 of the Finance Act. She dropped the demand of Rs. 12,39,255/- towards service tax liability for the year 2006-2007. 2. No appeal has been filed by the Revenue on the demand of service tax dropped by the impugned order. The appellant is aggrieved by the confirmation and recovery of demand, interest and penalties. It contests the demand both on merits and on limitation. The relevant period is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the said value has escaped the assessment for service tax liability, resulting in contravention of various provisions of the said Act and the said Rules aforesaid with intention to evade payment of impugned service tax. But for audit conducted by the department, the same would not have come to the notice of department. All these actions of the assessee amount to non-disclosure of the facts to the department, resulting into contravening of various provisions of the said Act and the said Rules aforesaid with an intent to evade payment of service tax as applicable and Rule 14 of the Credit Rules. Thus, it appears that the provisions of the Section 73 (a) of the said act and now proviso to Section 73 (1) of the Act ibid can be invoked and thu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces, exempted services and services not liable to service tax. Further at no stage, they had informed the department that they were maintaining separate account under a declaration to be attached while submitting first half yearly ST-3 return under Rule 5 (2) of the Rules ibid nor had they filed any such list of records giving details of taxable and non taxable services. I also find that with effect from 16.07.2001, due to the changes brought in the Finance Act, 2001, self-assessment of the service tax payable under the provisions of Section 70 of the Act ibid was introduced, wherein the Superintendent of Central Excise is empowered only to verify the correctness of the returns under the provisions of the Section 71 of the Act ibid. Under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 70 or having made the Return or fails to assess the tax in accordance with the provisions of the Finance Act and Rules made thereunder, the Central Excise Officer may require the assessee to produce such accounts, documents or the evidence as he may deem necessary and after taking into all relevant material "he shall, by an order in writing" carry out the best judgment assessment under Section 72 of the Finance Act. Evidently, once the Return is filed, it is the responsibility of the officer to scrutinize the return and it is his prerogative to call for any accounts, documents or other evidence from the assessee and make the best judgment assessment. This entire exercise can be completed and a notice for recovery of service tax short pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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