2010 (2) TMI 513 - AT - Service Tax

Tribunal remands order for reconsideration, emphasizing evidence of actual payments for correct Service Tax liability.

Security and Protective Corps Versus. Commissioner of Central Excise

The Tribunal set aside the impugned order and remanded the case to the Adjudicating Authority for reconsideration. The appellant was given the opportunity ... Delay in payment of service tax – Interest and Penalty - documents were lost in a theft - today they have retrieved many of the documents which were lost and they are able to justify the actual amount of Service Tax based upon the payments received by them from their customers – Held that: - set aside the impugned order and remand the matter back to the Adjudicating Authority to reconsider the issue afresh after following the principles of natural justice. Issues:- Correct amount of Service Tax liability based on actual receipts vs. Income-tax ReturnsAnalysis:The appeal before the Appellate Tribunal CESTAT, Bangalore was directed against Order-in-Appeal No. 52/2004-CE, where the appellant, engaged in providing Security Services, failed to discharge the Service Tax liability within the stipulated period. The lower authorities confirmed the demand of Service Tax along with interest and penalties under sections 77 and 78 of the Finance Act, 1994. The appellant contended that the quantification of the service tax dues based on Income-tax Returns was incorrect and that they had lost documents in a theft, but had since retrieved them to justify the actual amount of Service Tax based on payments received from customers.The issue at hand was the correct amount of Service Tax liability, with the Tribunal noting that the quantification should be based on actual receipts rather than Income-tax Returns. As the appellant claimed they could produce records of actual payments received from customers, the Tribunal decided to set aside the impugned order and remand the matter back to the Adjudicating Authority for reconsideration. The Tribunal emphasized the importance of following the principles of natural justice in the reconsideration process, allowing the appellants to present the evidences in their possession to defend their case effectively.In conclusion, the impugned order was set aside, and the appeal was allowed by way of remand to the Adjudicating Authority, providing the appellants with the opportunity to produce the necessary evidence to support their case. The Tribunal's decision highlighted the significance of basing Service Tax liability on actual receipts and ensuring a fair reconsideration process following the principles of natural justice.