Appeal allowed for remand due to service tax calculation discrepancy. Upheld objection on figures mismatch.

The appeal was allowed for remand to the Adjudicating Authority due to a discrepancy in the calculation of service tax. The appellant's objection regarding the mismatch between the figures in the ST-3 return and bank receipt was upheld, emphasizing the need for clear clarification and addressing the appellant's queries. The Adjudicating Authority's failure to respond adequately and provide necessary documents led to the setting aside of the order, with directions for a proper review and granting a personal hearing to the appellant.

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Issues: Calculation error in short payment of service tax, Lack of clarification by Adjudicating Authority, Discrepancy in figures between ST-3 return and bank receipt

In this case, the appellant raised a preliminary objection regarding the calculation error in the short payment of service tax. The appellant argued that the bank receipt shown differed from the bank statement available with them, leading to a discrepancy. Despite requesting clarification through multiple letters to the Adjudicating Authority, no response was provided, and the order was passed without considering the appellant's queries. On the other hand, the Revenue contended that the figures of the ST-3 return and bank statements submitted by the appellant were used to calculate the service tax demand, indicating no discrepancy. However, upon careful consideration, the Member (Judicial) found that there was indeed a mismatch between the gross value received as per the ST-3 return and the figure in the bank receipt. The appellant's letters seeking clarification were not addressed adequately by the Adjudicating Authority, who claimed that the calculations were done in the presence of the appellant during CERA audit. The Member disagreed with this stance, emphasizing that natural justice principles require clear clarification supported by necessary documents like bank statements and ST-3 returns. Consequently, the impugned order was set aside, and the appeal was allowed for remand to the Adjudicating Authority to provide the required clarification, address the appellant's queries, and grant a personal hearing. The appellant was directed to produce the bank statement/ledger to support their claim of the discrepancy in the service tax calculation. The appeal was allowed for remand to the Adjudicating Authority for further proceedings.

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