TaxTMI 
TaxTMI 
2026 (1) TMI 1349
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....dictional authorities holding Service Tax Registration No. AADCN7651EST001. They are also holding PAN No. AADCN7651E for the purpose of income tax purpose. 2.3 During the course of verification of ST-3 Return data filed by the appellant with the data regarding declared turnover in Income Tax Return (ITR)/Tax Deducted at Source (TDS) through 26AS for the year 2013-14, the department had observed that the figures shown at Rs.70,33,042/- in the ITR, does not match with the ST-3 return filed for the period October, 2013 to March, 2014 indicating 'Nil' taxable value of services. Therefore, the department had come to a conclusion that the appellants had not declared the turnover of services to the above extent and that service tax amount of Rs.8,69,283/- had not been paid by the appellant. 2.4 On the above basis, Department issued Show Cause Notice (SCN) No.211/AC/2019-20 dated 24.04.2019 to the appellant demanding service tax of Rs.8,69,283/- along with interest and for imposition of penalty on the appellants. Further, the department also verified the data relating to 2014-15 & 2015-16 and similarly demanded service tax amount of Rs.23,39,421/- by issue of SCN No.04/2020 dated 29.....
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....nover was Rs.14,64,548/- in the year 2013-14 and not Rs.70,33,042/- as alleged in demand notice dated 24.09.2019. Therefore, I find that there was an error in demanding appliable service tax for the relevant period in the said demand notice. I find that Rule 7(2) of Service Tax Rules, 1994 provides due date to file ST-3 returns and state that every assessee shall submit the half-yearly return by the 25th of the month following the particular half-year. Therefore ST-3 returns of particular demand on value of Rs.70,33,042/- pertaining to 2012-13 were 25thOctober, 2012 and 25thApril, 2013 whereas the relevant demand Notice on the said taxable value was issued on 24.04.2019 after statutory 5 years under proviso to Section 73(1) of FA, 1994 and accordingly the said demand notice dated 24.04.2019 which is issued on incorrect value and period is actually time barred. Accordingly, impugned order No.36/HQ/Tech-II/KKS/2020-21 dated 12.02.2021 deprived or merit and hit by limitation is liable for setting aside. 7.2 In respect of demand notice dated 29.09.2020 demanding Service tax of Rs.23,39,421/- for the period 2014-15 & 2015-16, I find that appellant was providing Works Contract S....
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....016, 20.12.2016 and 28.12.2016. (iii) The SCN for demand of service tax of Rs.23,39,421/- for the period 2014-15 and 2015-16 was issued by the department on 29.09.2020. 6.2 While adjudicating the SCN dated 29.09.2020, the Assistant Commissioner, Division I, Bhiwandi Commissionerate, had confirmed the service tax demands simply based on the difference between the figures indicating the value of services in ST-3 returns and the ITRTDS data for the financial year 2014-2015 & 2015-2016. There is no other document or evidence taken on record to show that the taxable service had been rendered by the appellants for substantiation and in confirmation of the service tax demand. Further, the appellants were not heard, though opportunities of three dates were given, before deciding the case by the original authority. 7.1 The first appellate authority, upon noticing the fact that the appellants had already paid the entire amount of service tax demand along with interest, prior to the issue of SCN and had also informed the same to the department in the SVLDRS scheme, had found no ground to sustain the demand and accordingly dropped the demand of service tax. However, he upheld th....
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....f Commissioner of Central Excise, Visakhapatnam Vs. Tirupathi Fuels Private Limited - 2017 (7) G.S.T.L. 142 (A.P.) is as follows: "3. It appears that the respondent-assessee registered themselves as an assessee under the Service Tax Rules, 1994. The respondent is offering the service of transport of goods by road. According to the Department, after an enquiry, it came to light that the respondent was not filing returns and not paying tax. 4. However, even before a show cause notice could be issued, the respondent-assessee paid the duty involved together with interest on the duty short-paid by them. But, the Additional Commissioner issued a show cause notice calling upon the respondent-assessee to show cause as to why penalty should not be levied. xxx xxx xxx xxx 11. It is true that under Section 78(1) of the Finance Act, 1994, an assessee is liable to pay service tax, if service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, by reason of fraud, collusion, wilful misstatement or suppression of facts or contravention of any of the provisions of the Act and the Rules with the intent to evade payment o....
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....f any, which in his opinion has not been paid by such person and, then, the Central Excise Officer shall proceed to recover such amount in the manner specified in this section, and the period of eighteen months referred to in sub-section (1) shall be counted from the date of receipt of such information of payment." 15. We have already seen that the liability to pay penalty imposed under Section 78(1) arises only after the service of notice under the proviso to Section 73(1). But, under sub-section (3) of Section 73, the Department cannot even issue a show cause notice, in cases where the Service Tax and interest has been paid, immediately upon the ascertainment of the Service Tax either on own assessment or on the basis of what was ascertained by the Central Excise Officer. Sub-section (3) was intended to confer an extended benefit much more in nature than the varying degrees of penalty imposed under the different provisos of sub-section (1) of Section 78. 16. It is true that sub-section (4) of Section 73 keeps the operation of sub-section (3) out of the purview, in cases where the Service Tax has not been levied, paid, short-levied or short-paid by reason of frau....