2014 (7) TMI 74 - AT - Service Tax

Tribunal allows appeal, remands for fresh decision based on Chartered Accountants' Certificate.

M/s. INDIAN OIL CORPORATION LIMITED Versus COMMISSIONER OF CENTRAL EXCISE, HALDIA

The Tribunal disposed of the appeal without the predeposit requirement. The demand notice was confirmed, alleging failure to pay service tax received from ... Import of services - reverse charge - Appellant claimed that the service tax demanded against them under the Head, ‘Intellectual Property Service’, had already been discharged under the Head, ‘Scientific and Consultancy Services’ - Held that:- After going through the Certificate of the Chartered Accountants dated 23.01.2014 placed before us, apparently we find that the Applicant had discharged the service tax involved in the present case, under the category, ‘Scientific and Consultancy Services’, for which the show cause notice was issued to them under the category, ‘Intellectual Property Services’, as is evident from the Annexure to the said show cause notice - Matter remanded back - Decided in favour of assessee. Issues: Application seeking waiver of predeposit of Service Tax, penalty under Sections 78, 76, and 77 of the Finance Act, 1994.The judgment deals with an application seeking waiver of predeposit of Service Tax and penalties imposed under Sections 78, 76, and 77 of the Finance Act, 1994. The Authorized Representative for the Applicant argued that the Applicant's Head Office had already paid the demanded service tax, supported by a Chartered Accountants' Certificate. The Certificate detailed the payment of service tax by the Head Office for services received from foreign vendors. The Applicant contended that no further service tax payment was necessary. The Revenue's Authorized Representative did not dispute the Certificate but suggested it needed scrutiny by the Adjudicating Authority.After hearing both sides, the Tribunal decided to dispose of the Appeal without the predeposit requirement. The demand notice was confirmed due to the alleged failure to pay service tax received from overseas service providers during a specific period. The Applicant claimed that the service tax was already paid under a different category, but lacked sufficient evidence. However, based on the Chartered Accountants' Certificate presented during the hearing, the Tribunal found that the service tax in question had indeed been paid under a different category than the one specified in the show cause notice. Thus, the matter was remanded to the Adjudicating Authority for a fresh decision, considering the Certificate and any additional evidence provided by the Applicant. The Appeal was allowed by remanding it to the Adjudicating Authority, and the Stay Petition was disposed of accordingly.