2019 (5) TMI 1232 - AT - Service Tax

Appellate Tribunal sets aside service tax demand, emphasizes need for credible evidence

M/s Awadesh Kumar Mishra Versus Commissioner of Central Excise And S.T., Lucknow

M/s Awadesh Kumar Mishra Versus Commissioner of Central Excise And S.T., Lucknow - 2019 (24) G.S.T.L. 611 (Tri - All.) Issues:Confirmation of service tax demand for financial years 2012-13 and 2013-14 in relation to short term accommodation services provided by the appellant.Analysis:The Appellate Tribunal, after hearing both sides, noted the appellant's grievance regarding the service tax demand. The appellant contended that the tariff for the accommodation service was below the threshold of &8377; 1,000 per room per day, making them eligible for exemption under Notification No. 31/2011, resulting in a nil rate of duty. However, the learned Commissioner (Appeals) did not accept this contention, stating that the Department had conducted a thorough investigation and found the tariffs recorded on the website, contrary to the entries in the appellant's ledger. The Tribunal observed that the Commissioner did not reject the ledgers maintained by the appellant and should have verified them along with the vouchers before relying solely on the information available on the website. Consequently, the Tribunal held that the Commissioner's observations were unsustainable due to the lack of credible evidence and set aside the order demanding the service tax amounts for the specified financial years along with interest and penalty.In conclusion, the appeal was allowed by the Tribunal, emphasizing the importance of verifying the appellant's ledgers and vouchers before making decisions based solely on external information. The Tribunal highlighted the necessity of credible evidence to support any findings or conclusions in such matters, ensuring a fair and just adjudication process.