TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 935
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....- alongwith interest and equivalent penalty under Section 78 and further penalty of Rs.10,000/- under Section 77(1) of the Finance Act, 1994. 2. Brief facts of the case are such that during the period 2014-15, the Appellant firm provided "Business Auxiliary Services" and "Manpower Supply Services" to the tune of Rs. 44,48,934/- and Rs.14,40,604/-. While the entire value of Business Auxiliary Services was disclosed in the Returns and tax liability was discharged at applicable rate, 25% of value of Manpower Supply Services i.e. Rs.3,60,151/- was disclosed in the Return and tax liability was discharged at applicable rate under Notification No.30/2012-ST dated 20.06.2012. 3. On the basis of information received from the Income Tax Departm....
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.... of Rs.91,400/- represents consideration towards transportation services provided to one company namely M/s Good Faith Dealers Private Limited, on which tax was payable under Reverse Charge basis and further, that amount of Rs.87,748/- represents amount of TDS deducted on higher amount by M/s International Tobacco Company Limited. 6. The SCN was then adjudicated vide Order-in-Original No.08/AC/D-II/GZB/2021-22 dated 26.04.2022 confirming demand of service tax of Rs.1,55,687/- alongwith interest and equivalent penalty holding that in absence of supporting document to show supply of manpower to a body corporate and in absence of records, benefit of partial reverse charge cannot be extended. It was also held that the Appellant has not submi....
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....stated in the SCN. Ld. counsel further submitted that having accepted the nature of services as manpower supply services in returns, the revenue cannot be permitted to doubt the nature of services in subsequent proceedings. He argued that the fault if any, of the Appellant was only that instead of disclosing full value of manpower supply services in returns and discharging tax liability @ 25% of the applicable rate of tax, the Appellant disclosed 25% value of the manpower supply services in returns and discharged tax liability at full rate, which is a bona-fide inadvertent error, not involving any additional tax liability, as net result remained the same. He also submitted that the remaining amount of Rs.1,79,748/- was also properly explain....
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....case of the Appellant that the provision of manpower supply service along with benefit of exemption notification and details of Notification No.30/2012-ST dated 20.06.2012 was duly disclosed in the returns. 13. However, in the adjudication order, it has been held that in absence of supporting documents to show supply of manpower to a body corporate, benefit of partial reverse charge cannot be extended. I find that this finding has been recorded by travelling beyond the scope of SCN. Once the fact of provision of manpower supply service along with partial reverse charge Notification was duly disclosed in the returns which was never objected by the revenue and there was no allegation in the SCN to doubt provision of manpower supply service....
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....of manpower supply services is clearly not sustainable and is therefore set-aside. 16. So far as remaining demands on the amount of Rs.1,79,148/- is concerned, the same has been confirmed in the adjudication order on the ground that the Appellant has not submitted any documents in respect of the said amount. However, I find from the reply to SCN that the Appellant submitted that amount of Rs.91,400/- represents consideration towards transportation services provided to M/s Good Faith Dealers Private Limited in respect of which Appellant submitted copy of its ledger A/c. Thus, it was not a case where the Appellant had not submitted any document but was a case where the Appellant discharged primary onus showing provision of GTA services for....