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of <h1>Case Remanded for Fresh Adjudication Due to Inadequate Fact Verification on Service Tax Liability and Classification Dispute.</h1> The Tribunal remanded the case for fresh adjudication, finding that the department failed to verify all facts before issuing the show cause notice ... Non-discharge of service tax - Architect Service - sale of space for advertisements services - HELD THAT:- There is no denying of fact that the certain amounts have been received by the appellant for providing services to various service recipients. One of the service recipients M/s. Saumya Construction Pvt. Ltd. has informed the department. They have made payment for architect and interior decorative service to the appellants - the appellant has been claiming that service provided by them to M/s. Saumya Construction Pvt. Ltd. falls under designing services. However, there are nothing on record to suggest that the service provided by the appellant pertains to designing service charges only. It is found from the beginning, the appellants have been claiming that the amount which have been received by them from M/s. Saumya Construction Pvt. Ltd. And others service recipient is on account of designing of the logo and models. While the show cause notice, on the basis of information received from the service recipient specially from M/s. Saumya Construction Pvt. Ltd., has claimed that the appellants have been providing the service of “Architect” and “Interior Decorator Service”. At the same time the learned Commissioner (Appeals) has confirmed the demand of Service Tax only under the category of Architect service - the department has not verified all the facts before issuing show cause notice in this case - the information received by the department should have been presented to the appellant before reaching it any conclusion regarding exact nature of service being provided by the appellant. Matter remanded to the original adjudicating authority for deciding the matter a fresh - appeal allowed by way of remand. Issues:The issues involved in the judgment are the classification of services provided by the appellant under 'Architect Service' and 'Interior Decorator Service' for Service Tax liability, the correctness of demands raised under different heads like event organization, display charges, and fast food court hire charges, and the scope of the show cause notice in confirming Service Tax liability.Classification of Services - Architect and Interior Decorator Service:The department alleged that the appellant provided services falling under the categories of Architect and Interior Decorator Service as per the Finance Act, 1994. The appellant contested this classification, arguing that demanding Service Tax under two different categories for the same service is legally impermissible. They received amounts for designing logos and models, not covered under the mentioned categories, for which Service Tax demands were deemed incorrect and unsustainable. The Tribunal found that the department did not verify all facts before issuing the show cause notice, remanding the matter back for fresh adjudication with proper opportunity for the appellant to present relevant documents.Demand under Various Heads:Apart from Architect and Interior Decorator Service, demands were raised under other heads like event organization, display charges, and fast food court hire charges. The appellant argued that the confirmation of Service Tax liability under these heads, especially for business exhibition service charges, was incorrect. They contended that the charges for showing slides in a cinema hall were not covered under exhibition and display services. The Tribunal, considering the arguments and precedents cited, allowed the appeal by way of remand for further examination.Scope of Show Cause Notice:The Commissioner (Appeals) had confirmed the Service Tax liability primarily under Architect Service, deviating from the scope of the show cause notice. The Tribunal observed that the department based its decision solely on information from a service recipient without verifying all facts. It was noted that proper opportunity should have been given to the appellant to present evidence regarding the nature of services provided. Consequently, the matter was remanded back to the original adjudicating authority for a fresh decision after considering all relevant details.This judgment highlights the importance of proper classification of services for Service Tax liability, the necessity of verifying all facts before raising demands, and ensuring that the scope of show cause notices align with the actual nature of services provided.
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