TaxTMI 
TaxTMI 
2025 (11) TMI 1554
X X X X Extracts X X X X
X X X X Extracts X X X X
....are that the Appellant M/s Uttarakhand Tent & Light House (Proprietor : Shri Kushla Nand Bhatt) is registered with the Service Tax Department. On the basis of third party data received from the Income Tax Department, it was observed that for the Financial Year 201617, the assessee had shown gross receipts of Rs.9,79,616/- in their ST-3 returns, whereas the gross receipts as per Form-26AS is Rs.13,35,550/-. Show Cause Notice dated 21.10.2021 was issued to the assessee to explain the reasons for the difference. It also proposed to demand Service Tax amounting to Rs.53,390/- on the differential value of Rs.3,55,934/- alongwith applicable interest and to impose penalties under various sections. The Adjudicating Authority vide the Order-in-Origi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....horized Representative justified the impugned order and prayed that the appeal filed by the Appellant, being devoid of merits, may be dismissed. 7. Heard both the sides and perused the appeal records. 8. I find that there is no dispute that the Appellant has been regularly filing ST-3 returns. I find that on going through page 154 of the appeal paper book, which is Profit & Loss Account of the Appellant for the Financial Year 2016-17, which shows the receipt of labour charges at Rs.3,55,934/- on the credit side and also shows the same amount as labour charges on the debit side. These entries are very clear and do not call for any adverse inference. 9. I find that the entire demand has been raised on the basis of difference in the f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....find any force in this argument because every assessee operates under self-assessment and is required to selfassess and pay service tax and file returns. If some tax escapes assessment, Section 73 provides for a SCN to be issued within the normal period of limitation. This provision will be rendered otiose if alleged incorrect self-assessment itself is held to establish wilful suppression with an intent to evade. To invoke extended period of limitation, one of the five necessary elements must be established and their existence cannot be presumed simply because the assessee is operating under self-assessment. 19. It has also been pointed out that but for the audit, the allegedly irregularly availed CENVAT credit would not have come ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... if either the assessee fails to furnish the return or, having filed the return, fails to assess tax in accordance with the Act and Rules. To determine if the assessee had failed to correctly assess the service tax, the central excise officer has to scrutinize the returns. Thus, although all assessees self-assess tax, the responsibility of taking action if they do not assess and pay the tax correctly squarely rests on the central excise officer, i.e., the officer with whom the Returns are filed. For this purpose, the officer may require the assessee to produce accounts, documents and other evidence he may deem necessary. Thus, in the scheme of the Finance Act, 1994, the officer has been given wide powers to call for information and has been....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... No doubt, audit and anti-evasion have their roles to play, but assessment or confirmation of assessment should remain the primary responsibility of the Central Excise Officers. (emphasis supplied) 22. Therefore, to say that had the audit not been conducted, the incorrect availment of CENVAT credit would not have come to light is neither legally correct nor is it consistent with the CBEC‟s own instructions to its officers." 12. Finally, the Division Bench allowed the appeal on limitation by summing up its observation in para 25 as under :- "To sum up: a) The Appellant assessee was required to file the ST 3 Returns which it did. Unless the Central Excise officer calls for documents, etc., it is no....