TaxTMI 
TaxTMI 
2025 (8) TMI 89
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.... during the course of investigation or later will not have any effect on the determination of such amount under Section 73 of the Act. Therefore, the confirmation of service tax demand of Rs.27,92,9271- under Section 73 by the adjudicating authority is upheld along with interest. It however, does not mean that the payment of Rs.15,04,479/- made through various challans would not be considered a payment at all. The same is the job of the Range Superintendent which has to examine at the stage of recovery of arrears after satisfying himself that the payment vide these challans was made against the service tax liability confirmed by the order dated 20.02.2009. 17. The adjudicating authority has also imposed penalty both under Section 76 & 78 of the Act. Section 76 and 78 of the Finance Act, 1994 are the underlying provisions for penalty under Service Tax. Section 76 deals with penalty for failure to pay Service Tax whereas Section 78 deal with penalty for failure to pay Service Tax for reasons of fraud, suppression etc. These provisions have undergone amendments with effect from 14th May 2015 vide Finance Act, 2015 in order to rationalize the penalty provisions. Penalty is imp....
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....ic verification with the connected -documents by the Jurisdictional officer is a basic requirement. Since, the issue involved s basically about factual verification and quantification, we find it fit and proper to set aside the impugned order and to remand the matter to the Original Authority for a fresh decision. The assessee/appellant shall be given adequate opportunity to submit all supporting evidence before a decision is taken. We note that the claim of the Revenue regarding incorrect adjustment of tax already paid has to be specifically examined by the Original Authority. 6. In view of the above observation, the appeals are allowed by way of remand." 2.3. In the remand proceedings the Adjudicating Authority decided the issue again holding as follows : "(i) Demand of Service Tax amounting to Rs.27,92,927/- (including cesses thereon) (Rs.Twenty Seven Lacs Ninety Two Thousand Nine Hundred and Twenty Seven Only) leviable during the period Oct 2001 to March 2006 is confirmed and is ordered to be recovered from M/s KBS Security organization, B-187, Rameshwaram Colony, Baghmugalia under the proviso to Section 73(1) of the Finance Act, 1994. The Noticee is direct....
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....by the appellant in the appeal memo and have perused the records of the case on our own. The appellant, despite service of notice, has not been appearing ever since the filing of the appeal. 4. We have considered the submissions made in the appeal during the course of arguments. 5. In the remand proceedings the adjudicating authority have after consideration of the documents including challans used for payment of the service tax as claimed by the appellant have observed as follows: "40. Results of the verificatory exercise are mentioned below: 40.1 Bills pertaining to Manpower But included in Security services On scrutiny of bill books seized from the noticee's premises, I find that while calculating service tax liability for the period 01.04.2002 to 18.04.2006 in Annexure F, G & H of the impugried notice, investigation has also included 32 Bills in Security services but the same actually pertained to manpower supply services. During this period, as supply of manpower services were not taxable, service tax is not liable to be demanded. Details are as follows: Sr.No. Annexure to Show Cause Notice Bill No./Bill book ....
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....DDMC 53160 24 F 290/26 01.04.2004 Bhartiya Manak Bureau 6150 25 F 106 01.07.2004 DDMC 53160 26 F 138 01.08.2004 DDMC 53160 27 F 34 01.05.2004 DDMC 53160 TOTAL 421739 Period 10.09.2004 to 18.04.2005 28 G 173/14 10.09.2004 DDMC 93160 29 G 192/14 01.10.2004 DDMC 53160 30 G 415/27 01.03.2005 Doordarshan 46072 31 G 277/16 01.11.2004 Doordarshan 53160 32 G 75/33 38139 DDMC 53160 TOTAL 298712 40.2 Amount of Bill wrongly taken I find that there were 18 bills whose amount has been wrongly taken and excess service tax has been demanded. Details are as follows : ....
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....01.09.2003 Shalimar Enclave 25202 14000 11202 18 F 45 01.05.2004 Chankyapuri Housing 11500 4500 7000 Total 237702 28100 209602 40.3 Bills Cancelled/Not Found/Duplicate Bills Further, I find that the investigation while calculating service tax liability, has also included some bills which were either cancelled or not found in bill books. Further some bills have been taken twice. Details are as follows : Sr.No. Annexure to Show Cause Notice Bill No./Bill book Date Party Amount Period 01.04.2002 to 13.05.2003 1 E 17/21 01.02.2003 MPSEDC 7853 2 E 22/21 01.02.2003 MPSEDC 13267 3 E 642/24 10.11.2002 MPSEDC 61489 4 E 650/24 10.11.2002 MPSEDC 67261 5 E 64/16 01.01.2003 Adva....
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.... 2328719 756957 14.05.2003 to 09.09.2004 5094830 1665100 4264000 2086839 10.09.2004 to 31.03.2005 4116686 477646 3817974 776358 16.06.2005 to 18.04.2006 12591693 12591693 19.04.2006 to 31.03.2007 7769881 7769881 42. Further, the noticee has argued that during the period under issue, Service Tax was required to be paid during the month immediately following the calendar month in which payments are received as per rule 6 of Service Tax Rules, 1994, as such Service Tax was required to be paid on the receipt amount and not on the billed amount. They have paid the Service Tax on the amount received as shown in their balance sheet to the tune of Rs.16,22,232/- for 2002-03 Rs.36,09,805/- for 2003-04, and Rs.38,35,338/- for 2004-05 Rs.39,85,620/- for the 2005-06 and Rs 39,49,121/- for 2006-07 along with the difference amount Rs.658445/- @10.2% of Rs.67161/-." 6. From the above observations and details made, we find that original authority had complied with the directions given in the order of the Tribunal remanding the m....