TaxTMI 
TaxTMI 
2026 (4) TMI 300
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.... (iii) I impose Penalty amounting to Rs. 6,18,861/- under Section 78 of the Finance Act 1994 read with Section 142, Section 173 & Section 174 of the CGST Act, 2017. (iv) I impose Penalty amounting to Rs. 10,000/- under Section 77(1)(d) of the Finance Act, 1994 read with Section 142, Section 173 & Section 174 of the CGST Act, 2017. (v) I confirm the demand of Late fees under Rule 7C of the Rules read with Section 70 of the Act read with Section 142 and 174 of CGST Act for not furnishing the Service Tax return within due date of filing of returns. (vi) I impose Penalty amounting to Rs. 10,000/- under Section 77(1)(c)(i) and 77(1)(c)(ii) of the Finance Act, 1994 read with Section 142, Section 173 & Section 174 of the CGST Act, 2017 for not providing the documents when asked by the investigating Officer. (vii) I impose Penalty amounting to Rs. 10,000/- under Section 77(1)(c)(iii) of the Finance Act, 1994 read with Section 142, Section 173 & Section 174 of the CGST Act, 2017 for not complying with the summons. (viii) I confirm the demand of inadmissible Cenvat Credit to the tune of Rs.4,74,374/- under Rule 14 of CENVAT Credit Rules, 2....
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....e period 01.04.2017 to 30.06.2017 (ii) 26AS for the F.Y. 2016-17 to 2017-18. (iii) Service Tax returns filed by you during the F.Y. 2016-17 to 2017-18 (Up to June, 17). (iv) Service Tax payment reconciliation sheet for the F.Y. 2016-17 to 2017-18 (Up to June, 17). (v) Proof of payment of Service Tax during the Financial Years 2016-17 to 2017-18 (Up to 30.06.2017). (vi) Sample Invoice issued during the F.Y. 2016-17 to 201718 (Up to June, 17). (vii) Works Contracts made with your clients during F.Y. 2016-17 to 2017-18 (Up to June, 17). 2.6 The Appellant in response vide Letter dated ........... submitted the copy of balance sheet, Form 26AS and ITR acknowledgement for the Financial Year 2016-17 and 2017-18. 2.7 The Balance Sheet of the Appellant for the year 2016-17 and 2017-18 (upto June 2017) were scrutinized and it was observed that the Appellant had shown receipts under the Head 'Revenue from Operations' and 'Other Income' in the Balance Sheets for the F.Y. 2016-17 and 2017-18 (April to June 2017). On the basis of the said return it was observed that the Appellant have short paid Service Tax for the Finan....
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.... paras. b. Interest due thereon at the applicable rate should not be demanded and recovered from them under Section 75 of the Act read with Section 173 and 174 of CGST Act on the amount of Service Tax short paid. c. Penalty should not be imposed upon them under Section 78 of the Act for nonpayment of due Service Tax by suppressing the value of taxable services from the department with intent to evade payment of Service Tax read with Section 173 & 174 of CGST Act. d. Penalty should not be imposed upon them under Section 77(1)(d) read with Section 173 and 174 of CGST Act for failure to pay service tax electronically to the department. e. Late fees should not be demanded under rule 7C of the Rules read with Section 70 of the Act read with Section 173 and 174 of CGST Act for not furnishing the Service Tax return for the period Apr- Sept, 2016-17, Oct-Mar' 2016-17 and Apr-June, 2017 within due date of filing of returns as shown in Table-3 above. f. Penalty should not be imposed upon them under section 77(1)(c)(i) and Section 77(1)(c)(ii) of the Act read with Section 173 and 174 of CGST Act for not providing the information and for not fur....
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....ty has appropriately held that search and seizure of Service Tax and issuance of show cause notice under Section 73 of the Finance Act, 1994 conducted in GST regime is valid in terms of Section 174(2) of the CGST Act, 2017. Therefore, I find no merit in this contention. 5.2 I find that the Appellant contention that impugned order has been passed ex-parte without considering reply dated 09.09.2022 of the Appellant along with order dated 28.02.2022 of the Hon'ble High Court of Allahabad, Lucknow Bench against show cause notice is incorrect as the Adjudicating Authority has taken note of aforesaid reply and order in the impugned order. 1 have also gone through the order dated 23.08.2022 and I observed that Hon'ble High Court has asked the Appellant to furnish explanation before the Adjudicating Authority. I also find that in their reply dated 09.09.2022, the Appellant has failed to bring any cogent explanation/facts/ record as to why they are not liable to pay service tax. Accordingly, I find no merit in this contention as well. 5.3 I find that in their grounds of appeal also the Appellant have failed bring any material explanation/facts/records as to why the....
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....ow cause notice the learned counsel for the petitioner submits that the recital in the show cause notice regarding evasion of payment of service tax is based on incorrect facts, however, we are of the view that this involves a factual enquiry and this Court under Article 226 of the Constitution of India would not enter into such a factual dispute as to whether there was evasion of service tax or attempted evasion or not especially as this is one of the issues on merits also apart from the question of limitation. In this view of the matter, we are of the opinion that the ends of justice would suffice if the petitioner submits his explanation in response to the show cause notice before the concerned authority raising all pleas including on the point of limitation and jurisdiction consequent thereof, which should be considered and a decision shall be taken in respect thereof, meaning thereby, authority who has issued the show cause notice, after receipt of a response from the petitioner, shall consider the question of limitation in the light of the provisions contained in Section 73 of the Finance Act, 1994 and such other provisions as may be attracted and if he finds that in....
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....ing not in force or existing at the time of such amendment or repeal; or (b) affect the previous operation of the amended Act or repealed Acts and orders or anything duly done or suffered thereunder; or (c) affect any right, privilege, obligation, or liability acquired, accrued or incurred under the amended Act or repealed Acts or orders under such repealed or amended Acts: Provided that any tax exemption granted as an incentive against investment through a notification shall not continue as privilege if the said notification is rescinded on or after the appointed day; or (d) affect any duty, tax, surcharge, fine, penalty, interest as are due or may become due or any forfeiture or punishment incurred or inflicted in respect of any offence or violation committed against the provisions of the amended Act or repealed Acts; or (e) affect any investigation, inquiry, verification (including scrutiny and audit). assessment proceedings, adjudication and any other legal proceedings or recovery of arrears or remedy in respect of any such duty, tax, surcharge, penalty, fine, interest, right, privilege, obligation, liability, forfeiture or punishmen....
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.... 6,18,861 Note: 1) Tax Rate includes all the statutory cesses applicable during the respective Financial Years. 2) Since the Noticee did not submit month-wise details of services provided by them therefore higher rate of Send(n Tax applicable during that particular year te. @ 15% for the F. Y. 2016-17 has been applied for computation of Service Tax liability. Thus from the above table it is clear that the party has short paid the tax to the tune of Rs.6,18,861/- 5.5 The party has filed the Service Tax returns (ST-3s) after the due date of filing of returns as detailed mentioned hereunder in the Table-2'- Return filing Status Returns period Due date of filing Actual Date of filing Delay in filing of returns 2016-17 (Apr-Sept) 25.10.2016 10.10.2017 350 (Oct-Mar) 2016-17 30.04.2017 11.10.2017 164 2017-18 (Apr-June) 15.08.2017 23.02.2018 192 The party is liable to pay Late fees under Rule 7C of the Rules read with Section 70 of the Act read with Section 142 and 174 of CGST Act. 5.6 On scrutiny of the Service Tax returns (ST-3s) of the party for the Financial Year 201....