Service tax exemption claim remanded for fresh verification of sale documents and reconsideration under the notification

Service tax exemption claims under Notification No. 1/2006-ST and the alternative claim under Notification No. 12/2003-ST were examined on the basis of documentary proof of sale of goods and materials. The tribunal found that some records produced before it prima facie supported the appellant's claim, but those documents had not been earlier examined by the adjudicating authority and required detailed verification. The impugned order was set aside, and the matter was remanded for fresh consideration of the exemption claim under Notification No. 12/2003-ST after scrutiny of the documents and in compliance with natural justice.

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Issues: Whether the matter should be remanded for reconsideration of the appellant's claim to the benefit of the exemption notifications on the basis of documents produced before the Tribunal.

Analysis: The demand had been confirmed after denial of the benefit of Notification No. 1/2006-ST and rejection of the alternative claim under Notification No. 12/2003-ST on the ground that the value of goods and materials sold was not properly supported by evidence. The Tribunal found that the appellant had produced some records before it which prima facie indicated sale of materials, and that these records required detailed scrutiny by the adjudicating authority. As the documents had not been produced earlier, the authority below was required to be given an opportunity to examine them and decide the claim afresh in accordance with natural justice.

Conclusion: The impugned order was set aside and the matter was remanded to the adjudicating authority for fresh consideration of the claim under Notification No. 12/2003-ST after verification of the documents and after following the principles of natural justice.

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