TaxTMI 
TaxTMI 
2025 (11) TMI 950
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....tion Ltd., 10, Ashok Marg, Lucknow in the above manner. 2.1 The Appellant is engaged in providing taxable services under the category of 'Commercial Training or Coaching Centre, Information Technology Software Services and Business Auxiliary Service'. 2.2 Demand Cum Show Cause Notice No.3/JC/ADJ/Lko/ 201516 dt.15.04.2015 for the Financial Year 2013-14 issued demanding Service Tax in respect of these activities. In furtherance of the said Show Cause Notice Appellant vide Letter dated 30.10.2015, 20.11.2015 and 18.12.2015 asked to provide information in respect of the above services for the period 201415 & 2015-16 (upto Sept. 2015). The Appellant vide letter dated 07.01.2016 provided head-wise information along-with the supporting documents, copy of annual accounts for the Financial Year 2014-15. 2.3 On the basis of the information provided, the short payment of Service Tax has been computed as in table below:- Period (Financial Year) Amount received as per profit & loss account Total Amount received (sum of column no.2 &3) Corporate Computer Training Fee account credited by the transfer from advance account Difference between (column no.4 & 5) ....
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.....03.2017 holding as follows:- ORDER 1. I hereby confirm the demand of Service Tax amounting to Rs.3,57,670.00 under Section 73 (1) of the Act along-with interest at appropriate rate under Section 75 of the Finance Act, 1994. I drop the demand of Rs.1,53,957.00 [(Rs.5,11,627.00 (-) Rs.3,57,670.00)]. 2. I impose penalty of Rs.35,767.00 under Section 76(1) of Finance Act, 1994 for short payment of Service Tax. 2.7 Aggrieved Appellant filed appeal before the Commissioner (Appeals) which has been disposed of as per the impugned order. Aggrieved Appellant has filed this appeal. 3.1 This matter has been listed for hearing on number of times i.e. 18.03.2024, 24.06.2024, 29.07.2024, 18.09.2024, 13.11.2024, 09.12.2024, 05.03.2025 & 15.07.2025. When the matter was listed on 15.07.2025, none appeared for the Appellant. Shri Shiv Kumar Yadav, Clerk for the Counsel appeared and requested for an adjournment. Since the matter has been adjourned for more than the maximum prescribed number of times as per proviso to Section 35C (1A) of the Central Excise Act, 1944 matter has been taken up for consideration after hearing the Revenue. On 15.07.2025 following order was passed....
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....le to be taxed. Therefore I find that the amount of Rs.18,92,000/-involving Service Tax amounting to Rs.2,33,851/-, received by the appellant as non-refundable processing fees (tender cost) is liable to be taxed. Original Adjudicating authority has rightly confirmed the demand and termed this service as Business Support Service I also find that the Adjudicating authority has already reduced the demand by considering the plea of the Appellants regarding computation error, I find that he has rightly confirmed the amount of Service Tax of Rs.75,536/- and therefore I uphold the of demand of Rs.75,536/-." 4.3 We find that the demand have been confirmed in respect of the business support services as made in the statement of demand and in respect of the commercial training and coaching services. The demand has been reduced from Rs.2,77,776/- to Rs.75536/-. All other demand raised in the statement of demand have been dropped. 4.4 The Order-In-Original records as follows:- The demand under discussion was raised mainly on the basis of taxable amount reflected in ST-returns for the financial year 2014-15 vis-à-vis P & L account for the period. The party submitte....
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....mand of Rs.2,29,493/-related to differential value between P & L account and ST-3 returns for Commerical Training or Coaching Services, and, the rest demand of Rs.1,53,957/- (2,29,493-75,536) is proposed to be dropped. In respect of differential value of computer education fee for "Commercial Training or Coaching Services" the party submitted that 'A' level and 'O' level training certificate issued by them are recognized by "All India Counsel for Technical Education" as such Service Tax as not applicable on this service, but they failed to submit the authority by virtue of which they could enjoy the status of "recognized" during the period 2014-15. Hence, the Service Tax demanded on this count amounting to Rs.48,283/- is liable to be confirmed. In respect of amount received on account of "Businesses Support Service", they have accepted that no bill/invoice had been issued to the empanelled vendors from whom this amount was realized, and this amount was directly credited in their Profit & Loss Account. They have contended that they had not provided any service to the prospective empanelled vendors as such they are out of the purview of any tax. The ....
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..... Aggrieved with the order, the appellant preferred this appeal on the following grounds: * The appellant had received a non-refundable token amount from its vendors who have applied for empanelment so that only serious vender may apply and also to bear the cost of e-bid conducted by the appellant. * The appellant did not provide any service to the vendors. 4. Personal hearing in the case was held on 28.11.2019. Shri Pradeep Kumar, Authorized representative, appeared on behalf of the appellant and re-iterated the grounds of appeal. 5. I have gone through the case record. It is apparent from the record that the appellant is a nodal agency of Government of U.P. for empanelment of the vendors for development of various software. As a part of e-bidding process, non-refundable e-Bid processing fee amounting to thirty thousand rupees was collected from each bidder(vendor) interested in the empanelment. After screening of the bids, successful bidders were empanelled. It is alleged that the said amount of thirty thousand rupees was received by the appellant on account of service of promotion o business of the vendors. Whereas the appellant contend that t....