Tribunal overturns service tax demand due to lack of verification. Appellant can submit documents for reconsideration.

The Tribunal set aside the impugned order confirming a demand of service tax against the appellant, amounting to Rs. 36,17,013/-, along with interest and penalties. The case involved the appellant disputing the demand under reverse charge mechanism for Legal Consultancy Services and Security Services. The Tribunal found lack of document verification by the Adjudicating Authority and audit team, leading to negligence in confirming the demand. The matter was remanded back to the Adjudicating Authority for proper correlation of service tax payments and verification, allowing the appellant to provide relevant documents for reconsideration of the liability.

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Issues:
- Appeal against demand of service tax
- Verification of documents by Adjudicating Authority and audit team
- Contention regarding payment of service tax under reverse charge mechanism
- Lack of verification leading to huge demand confirmation
- Setting aside the impugned order and remanding the matter

Analysis:
The appellant appealed against the demand of service tax amounting to Rs. 36,17,013/-, along with interest and penalties, confirmed by the impugned order. The case involved the appellant being registered for providing services and receiving services from service providers. It was noted during an audit that the appellant had to pay service tax under reverse charge mechanism on Legal Consultancy Services and Security Services. The appellant contended that they had paid service tax under reverse charge mechanism for services where the service provider had not paid, supported by a certificate from a Chartered Accountant. However, the Adjudicating Authority confirmed the demand without considering the certificate, leading to the appeal.

The appellant argued that the demand was unsustainable due to lack of document verification by the Adjudicating Authority or the audit team. They emphasized that proper investigation could have obviated the need for a show cause notice. The Adjudicating Authority did not request copies of invoices to verify if the service provider had paid the service tax, rendering the Revenue's argument invalid. The Tribunal found negligence on the part of the audit team as the demand was confirmed without proper correlation or verification.

Consequently, the Tribunal set aside the impugned order and remanded the matter back to the Adjudicating Authority. The Adjudicating Authority was directed to correlate the service tax paid by the appellant and the service provider to determine the correct demand. The appellant was given the opportunity to provide all relevant documents, and an officer could be deputed to verify records at the appellant's premises. The appeal was disposed of by way of remand, providing a chance for further verification and reconsideration by the Adjudicating Authority to determine the actual liability of the appellant.

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