2018 (5) TMI 1524 - AT - Service Tax

Appeal allowed on grounds of partial payment in subsequent year, remanded for re-determination

M/s Narayan Associates Versus Commissioner (Appeals), Central Excise & CGST-Vadodara

M/s Narayan Associates Versus Commissioner (Appeals), Central Excise & CGST-Vadodara - TMI Issues involved: Appeal against order-in-appeal regarding short payment of service tax during 2011-12.Analysis:The appeal was filed against the order-in-appeal passed by the Commissioner (Appeals), Central Excise & CGST-Vadodara, regarding the short payment of service tax amounting to Rs. 2,44,017 during the period 2011-12. The appellant claimed that there was a difference in the service tax payable amount as per the Audited Balance Sheet and the periodical ST-3 returns filed with the department. The appellant argued that a part of the alleged short payment was attributable to a provision made in the books of accounts in the Financial Year 2011-12, for which bills were raised in the subsequent Financial Year 2012-13, and the service tax amount was paid accordingly. The remaining amount of short payment was not disputed by the appellant.The Ld. AR for the Revenue contended that since the issue was not raised before the Adjudicating Authority, it could not be verified. The Member (Judicial) found that the appellant had specifically claimed that a portion of the total short payment had been paid in the Financial Year 2012-13, as the provision was made in the year 2011-12, and bills were raised in the subsequent year. The Member (Judicial) concluded that this fact needed verification by the Adjudicating Authority, and re-determination of the liability should be carried out accordingly. Consequently, the impugned order was set aside, and the appeal was remanded to the Adjudicating Authority for verification of facts based on the observations made. The appeal was allowed by way of remand.