2013 (12) TMI 155 - AT - Service Tax

Appellant's Tax Appeal Allowed on Remand for Additional Evidence in Banking Sector

The appellant filed a miscellaneous application seeking additional evidence to contest a tax demand under 'Banking and Financial Services.' The appellant ... Demand of service tax - Banking and Financial Services - Held that:- appellant has now placed the Chartered Accountant's certificate showing that there is excess payment of service tax of Rs. 23.77 lakhs for the year 2007-08. In our considered view, the appellant should be given an opportunity to demonstrate payments before the original authority in respect of the excess payment as stated in the application. Accordingly, we set aside the impugned orders and remand the matter to the original authority to decide afresh after considering the payment insofar as excess payment of service tax of Rs. 23.77 lakhs and other issues - Decided in favour of assessee by way of remand. Issues:Demand of tax under 'Banking and Financial Services' for the period 10.9.2004 to 31.3.2008.Analysis:The appellant filed a miscellaneous application for additional evidence, claiming an excess payment of service tax for the year 2007-08, which would substantially reduce the demand. The appellant's counsel argued that a specific amount was already included in the service tax FOREX commission, citing a previous stay granted by the Bench in a similar case. The appellant provided a Chartered Accountant's certificate and a reconciliation statement to support their claim.The Authorized Representative referred to a previous Stay Order directing the appellant to deposit a certain amount, highlighting non-compliance with producing proof of service tax liability discharge. The Representative contested the excess payment claim and the demand based on statutory audit findings, emphasizing the importance of actual payment proof over the Chartered Accountant's certificate.After considering both sides' submissions, the Bench noted that the previous Stay Order was an exparte order later recalled. The appellant presented evidence of the excess service tax payment for 2007-08. The Bench decided to give the appellant an opportunity to demonstrate the payments made before the original authority, particularly regarding the excess service tax payment. Consequently, the impugned orders were set aside, and the matter was remanded to the original authority for a fresh decision, keeping all issues open for consideration.The miscellaneous application filed by the appellant was disposed of, and the appeal was allowed by way of remand. The stay application was also disposed of during the proceedings.