2023 (6) TMI 464

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....ce Tax under Business Auxiliary Services (BAS) since the job work goods are ultimately used in the manufacture of dutiable finished goods. The Department during their audit, found that inspite of their claim that their activity does not call for payment of Service Tax, in fact they have collected Service Tax of Rs. 25,59,783/- during the period 2004-05 to 2007-08. After this was pointed out by the audit team, the Appellant paid the quantified amount of Rs. 25,59,783/- along with interest of Rs.6,00,148/-. The Department issued Show Cause Notice on 28.10.2009 for the period 2004- 05 to 2008-09 by invoking the extended period provisions wherein going by the details provided by them in their Profit & Loss Account visa-a-vis ST-3 Returns, the d....

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....ty. Therefore, he prays that the present appeal may be allowed on merits. 3. Learned AR submits that the Appellant even after claiming that they were exempted from the payment of Service Tax, they were actually collecting amounts from their clients. This has come to the notice of the Department only due to the audit undertaken. After this was pointed out, the Appellant has paid the same along with interest. The amount quantified by audit is purely based on the preliminary assessment of the audit and the Appellant cannot take the stand that the finally quantified amount of Rs. 1,32,70,617/- is not correct, just because of the fact that audit has initially quantified the sum of Rs. 25,15,783/-. The Department has clearly established that t....

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....taken as basis for raising the demand. The job work income shown under this head obviously refers to the job work undertaken by them, of which none amounts to manufacture, which indicates that the entire amount is covered by the Notification. Consequently, as per their own admission, they have collected Service Tax on the said amount, which they have failed to render to the Government account. If they have collected any amount less than the demand, the assessees should have proved the same, which they have failed to do. They should have submitted the list of partywise ledger account with copies thereof, duly certified by the Chartered Accountant to substantiate their claim that they have actually collected the amount claimed by them i.e. Rs....