TaxTMI 
TaxTMI 
2007 (2) TMI 107
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....t the appellant are collecting service tax from their clients and the same is not remitted fully to the Government account, the officers attached to SIV Cell, Service Tax Commissionerate conducted verification at the appellant's premises. The statement was recorded from Shri M. Yusuf, Proprietor of the appellant's unit on 2-8-2005. The Show Cause Notice C. No. IV/9/12/2005-STC (Adj) dated 21-10-2005 was issued. After due processing of law the lower adjudicating authority confirmed the demand of Service Tax amounting to Rs. 15,19,139/- and Education Cess of Rs. 7,555/-, along with appropriate interest under Section 75 of the Finance Act, 1994 and also imposed penalty of Rs. 100/- per day till payment of Service Tax, under Section 76 of the F....
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....efore the question of payment of service tax as alleged in the impugned order does not arise. In this regard the appellants relied on the clarification issued by Central Board of Excise and Customs, vide Circular F. No. 341 /43/96-TRU, dated 31-10-1996 which is binding on the Department. 6. The averment in the impugned order with regard to bank statements is not sustainable in law. It is the duty of the Department to prove that the entire bank transactions are relatable to taxable value collected by the appellants from the customers for performing alleged service. The appellants relied on the following decisions in support of their contentions. 1. Icycold Commercial Enterprises v. CCE - 1994 (69) E.L.T. 337 (T) 2. D.P. Steels indus....
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....department. 9. I have carefully gone through the case records and submission writ ten as well as oral. 10. The appellant have mainly contended that their operation are mostly on co-courier, co-loader bases except very few transaction of direct services. As regard co-loader service, Board vide Circular F. No. 341/43/96/TRU, dated 31-10-1996 has clarified that:. "It has been pointed out that in some cases one courier agency, who undertakes to deliver the documents, goods, or articles received from customers, utilises the services of another company for in-transit movement of such documents, etc. from one point to another. These are, technically, called co loaders. The co-loader undertakes to transport the documents, goods or articles....
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....adey Micronutrients v. CCE - 1996 (87) E.L.T. 19 (S.C.) held that even if it be contended that a circular is not issued under Section 37B, circulars issued have to be treated as if issued under the said Section and the Department will be estopped from arguing that the circular is not valid. The Supreme Court also held that such circulars are not advisory in character but binding on Central Excise Officers. 12. The lower adjudicating authority in para 14.2 of the impugned order in original found that "the statement showing figures of Co-Couriers and Co-loaders as submitted by BBC during Personal Hearing has got no documentary support. The copy of Profit and Loss Account for the year 2004-05 showing an income of Rs. 38,31,387/- cannot b....