Security services provider disputes penalties under Sabka Vishwas Scheme, penalties set aside

M/s. Command Security Versus Commissioner of CGST & CX, Kolkata North Commissionerate

M/s. Command Security Versus Commissioner of CGST & CX, Kolkata North Commissionerate - TMI Issues involved:
- Demand of Service Tax for the period 2006-07 to 2010-11
- Appropriation of payment by Adjudicating Authority
- Appeal rejection by Commissioner (Appeals)
- Opting for Sabka Vishwas Scheme
- Dispute over further demand under SVLDRS-2

1. Demand of Service Tax:
The Appellant, a provider of Security Services, faced a demand of Rs.17,43,346 for non-payment of Service Tax for the period 2006-07 to 2010-11. The investigating officials collected cheques amounting to Rs.10,00,000 during the investigation. The Adjudicating Authority confirmed the demand and only appropriated Rs.5,00,000 in the order-in-original (OIO) passed on 24/12/2012.

2. Appeal Process:
Aggrieved by the OIO, the Appellants filed an appeal before the Commissioner (Appeals) which was subsequently rejected. They also paid interest of Rs.5,98,748. The Appellants opted for the Sabka Vishwas Scheme, submitting that they pre-deposited Rs.24,37,344 under this Scheme against the confirmed demand of Rs.17,43,346.

3. Dispute under SVLDRS-2:
The Department considered only Rs.5,00,000 as the deposited amount, issuing SVLDR-2 demanding a further Rs.23,002. The Appellant disagreed with this demand in SVLDRS-2A. Despite this, no further action was taken by the Department, and the Appellant was not issued the SVLDRS-4 Discharge Certificate.

Judgment:
The Appellant, not contesting the Service Tax and interest already paid, focused on contesting the penalties imposed. The penalties were set aside, and no further amount was deemed recoverable from the Appellant. Additionally, no refund accrued to the Appellant. The Appeal was disposed of accordingly.