2012 (11) TMI 370 - AT - Service Tax

Tribunal grants Stay Petition, emphasizes correct tax calculation & jurisdictional considerations.

M/s Vihar Aahar Pvt. Ltd. Versus Commissioner of Service Tax Ahmedabad

The Tribunal allowed the appeal in the case concerning a Stay Petition for waiver of pre-deposit of Service Tax, interest, and penalties. The appellant's ... Outdoor catering services - application for waiver of pre-deposit of Service Tax interest thereof and penalties - Held that:- The adjudicating authority has confirmed the demands which are beyond his jurisdiction and falls within the jurisdiction of various other Commissionerates. No notification or circular issued by Board authorizing or directing the Ahmedabad-I Commissioner to issue Show Cause Notice and adjudicate the same. Finding strong force in the contentions raised by the assessee that for the demand within the Ahmedabad-I, re-quantification needs to be done as the appellant's claim of selling the biscuits, namkin etc has been accepted by the adjudicating authority, but he has not given any due weightage to such submission and for calculation of gross value of tax liability - in favour of revenue by way of remand. Issues:1. Stay petition for waiver of pre-deposit of Service Tax, interest, and penalties under Sections 76, 77 & 78 of Finance Act, 1994.2. Jurisdictional concerns regarding the confirmation of demands by the adjudicating authority.3. Incorrect calculation of Service Tax liability by considering the value of pre-cooked eatables.4. Applicability of Tribunal decisions in similar cases.5. Need for re-quantification of the demand within the jurisdiction of Ahmedabad Commissionerate.6. Lack of notification authorizing the Ahmedabad-I Commissioner to issue Show Cause Notice and adjudicate demands from other Commissionerates.Analysis:1. The Stay Petition was filed seeking waiver of pre-deposit of Service Tax, interest, and penalties. The appellant had not discharged the Service Tax liability for services falling under outdoor catering services, amounting to Rs. 18,73,654. The Tribunal decided to dispose of the appeal after allowing the Stay Petition.2. The appellant argued that the adjudicating authority, the Commissioner of Service Tax, Ahmedabad-I, confirmed demands beyond their jurisdiction. The Tribunal noted the absence of any notification authorizing the Ahmedabad-I Commissioner to issue Show Cause Notices for demands falling under other Commissionerates. The issue of jurisdiction was deemed to be beyond the adjudicating authority's scope.3. The appellant contended that the calculation of the Service Tax liability was incorrect as it included the value of pre-cooked eatables like biscuits and namkin, on which VAT had already been paid. The Tribunal found merit in this argument and highlighted the need for re-quantification of the demand within the Ahmedabad-I jurisdiction.4. The appellant referenced Tribunal decisions in similar cases to support their arguments. The Tribunal acknowledged the relevance of these precedents and directed the adjudicating authority to reconsider the issues raised, following the principles of natural justice.5. The Tribunal set aside the impugned order, remanding the matter back to the adjudicating authority for a fresh review. The decision was made without expressing any opinion on the merits of the case, keeping all issues open for further consideration.6. Ultimately, the appeal was allowed by way of remand, emphasizing the importance of proper jurisdictional considerations and accurate calculation of tax liabilities in such cases.