2021 (6) TMI 1043 - HC - Service Tax

Court affirms tax assessment, extends appeal deadline, and dismisses petitions on service charge breakdown.

M/s. Trinity's Clearing and Shipping Agencies Versus Union of India, The Additional Commissioner of GST and Central Excise, The Assistant Commissioner of GST And Central Excise, Egmore Division

The court upheld the order-in-original and statements of demand due to the lack of detailed information on service charge breakdown. The Assessing ... Valuation - Tax levied on entire amount - reimbursement was not considered - break up of service charge received by the petitioner (reimbursable) not produced - HELD THAT:- Admittedly, the issue involved is factual and there is a clear finding in the impugned order to the effect that break up of service charge received by the petitioner during the period in question have not been produced by them - The reply filed also does not contain the bifurcation of the amounts liable to service tax and the reimbursable expenses, which are excludible. In the absence of such details, the Assessing Officer cannot be faulted in having brought to tax the entire amount. It is thus appropriate that the petitioner file statutory appeals in order that these factual aspects may be looked into. In line with the decision of the Supreme Court in a series of judgments, viz., IN RE: COGNIZANCE FOR EXTENSION OF LIMITATION [2021 (3) TMI 497 - SC ORDER], IN RE : COGNIZANCE FOR EXTENSION OF LIMITATION [2020 (5) TMI 418 - SC ORDER] and M/S. SS GROUP PVT. LTD. VERSUS AADITIYA J. GARG & ANR. [2021 (1) TMI 804 - SUPREME COURT] extending the limitation for filing of appeals, petitioner is granted 30 days time from today to file appeals. This is for the reason that the present Writ Petitions have been pending on the file of this Court since 11.01.2021. Such appeals, if filed within the period as aforesaid, will be taken on file by the Appellate authority without reference to limitation, but ensuring all other statutory conditions and considered on merits and in accordance with law - petition disposed off. Issues:Challenge to order-in-original dated 06.02.2020 and statements of demand dated 15.04.2019 and 11.02.2020.Analysis:The primary issue in this case pertains to the challenge against the order-in-original and statements of demand. The court notes that the factual issue at hand revolves around the lack of production of the break-up of service charge received by the petitioner during the relevant period. The impugned order clearly states the absence of such details, specifically the bifurcation of amounts liable to service tax and reimbursable expenses, which are excludible. Consequently, the Assessing Officer was justified in taxing the entire amount due to this lack of specific information.The court, in line with various judgments including the decision of the Supreme Court in In Re: Cognizance for Extension of Limitation and M/s.SS Group Pvt. Ltd. V. Aaditiya J. Garg & another, extends the limitation for filing appeals. The petitioner is granted an additional 30 days from the date of the judgment to file appeals. This extension is granted due to the pending status of the writ petitions since a specific date.The court emphasizes that if the appeals are filed within the extended period, they will be accepted by the Appellate authority without reference to limitation but subject to all other statutory conditions. The appeals will be considered on their merits and in accordance with the law. Finally, the writ petitions are disposed of as per the terms mentioned, with connected miscellaneous petitions being closed, and no costs being awarded in this matter.