TaxTMI 
TaxTMI 
2026 (6) TMI 1008
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....t Cess) for the period 2016- 17 from them by invoking first proviso to Section 73 (1) of the Finance Act. 1994 read with Section 174 of the Central Goods and Service, Tax Act, 2017 (ii) I confirm the demand and recovery of Interest from them under Section 75 of the Finance Act, 1994 read with Section 174 of the Central Goods and Service Tax Act, 2017. (iii) I impose a penalty of Rs.7,36,202/- (Rupees Seven Lakh Thirty Six Thousand Two Hundred and Two Only) under Section 78 of the Finance Act 1994 read with Section 174 of the Central Goods and Service Tax Act, 2017 (iv) I impose a penalty / Late fee of Rs.40,000/- [Rs. Forty thousands only] under section 70 of Finance Act 1994, read with Rule 7 of Service Tax Rules, 1994 and Section 174.of the Central Goods and Services Tax Act, 2017 for non- filing of ST-3 Return the Period October, 2016 to March, 2017 This order is issued without prejudice to any other action that may be taken under the Central Excise Act, 1944, the Central Goods and Services Tax/Act, 2017 or-under any other law for the time being in force. 2.1 Appellant was registered with the department vide Service Tax Registration No. AAB....
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.... (i) I confirm the demand and recovery of Service Tax amounting to Rs.7,36,202/- (Rupees Seven Lakh Thirty Six Thousand Two Hundred and Two Only) (including Krishi Kalyan Cess and Swachh Bharat Cess) for the period 201 6- 17 from them by invoking first proviso to Section 73 (1) of the Finance Act, 1994 read with Section 174 of the Central Goods and Service Tax Act, 2017. (ii) I confirm the demand and recovery of Interest from them under Section 75 of the Finance Act, 1994 read with Section 174 of the Central Goods and Service Tax Act, 2017. (iii) I impose a penalty of Rs.7,36,202/- (Rupees Seven Lakh Thirty Six Thousand Two Hundred and Two Only) under Section 78 of the Finance Act, 1994 read with Section 174 of the Central Goods and Service Tax Act. 2017. (iv) I impose a penalty / Late fee of Rs.40,000/- (Rs. Forty thousands only) under section 70 of Finance Act 1994. read with Rule 7 of Service Tax Rules 1994 and Section 174 of the Central Goods and Services Tax Act. 2017 for non- filing of ST-3 Return the Period October, 2016 to March. 2017 This order is issued without prejudice to any other action that may be taken under the Central Exci....
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....Rs.34,75,540/-under 194/b (TDS on Rent) of the Income Tax Act,1961, totaling Rs.49,08,016/-, and as shown in ITR for F.Y 2016-17 for a value of Rs. 49,08,016/-, is chargeable to service tax under section 66B ibid, under the category „other than the services mentioned in the negative list'. 5.9 I observe that the appellant has pleaded that they have already deposited Service tax amounting to Rs.5,40,262/- (Rs.3,72,09//+ KS.1,08,103/-) towards the service tax liability but the adjudicating authority failed to consider the same. 6.1 I find that in the instant matter the taxability of the following three services are involved and for the sake of ease of reference I propose to discuss the same service wise as under : 6.1.1 TAXABILITY OF THE SERVICES VIZ. RENTING OF IMMOVABLE PROPERTY Ab-initio I observe that the appellant is not contesting the taxability of the services viz. Renting of Immovable property and the only dispute is whether the amount of Service tax of Rs.3,72,097/- deposited by the appellant can be considered as having been deposited by the appellant against their Service tax liability against the said services. 6.1.2 I....
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.... Ltd., Lucknow and in addition the appellant was also providing the services of Loading and un-loading of such services. The adjudicating authority has confirmed the demand of Service tax holding that the above stated three services are not naturally bundled services and therefore were liable for Service tax. 6.2.2 Instantly the appellant has submitted that the services are bundled services and the services of Transportation gives the color to the services being provided and accordingly the taxation of such services is to be determined treating the services in question as the services of Transportation of fertilizers. The appellant has also submitted as per the provisions of clause No.20 & 21 of Notification No.25/2012-ST dated 20.6.2012 & 3/2013-ST dated 1.3.2013 such services are exempt from payment of Service tax. 6.2.3 I have considered the averments of the appellant and find that even if the averments of the appellant are accepted on their face value even then I hold that the invoices of the appellant clearly show the vivisection of the values of the services of the transportation and the loading and unloading of the Chemical fertilizers. I also observe that ....
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.... Commissioner (Appeal) which has been disposed of by the impugned order. 2.10 Hence this appeal. 3.1 Hearing in this appeal was held electronically. I have heard Shri Aalok Arora, Advocate for the appellant and Ms Chitra Srivastava, Authorized Representative for the revenue. 3.2 Arguing for the appellant counsel submitted that: • That in the matter at hand the lower authorities have disregarded the deposit of service tax Rs.3,72,097/- made during the F/Y 2016-17.It is submitted, since the assessee company have two directors and both were severally sick and on bed, they could not look after the business. The accountant has maintained ledger account of service tax deposited during F/Y 2016-17 and deposited the tax on challans. The copy of ledger showing date-wise deposit of service tax submitted before the lower authorities (refer page 102-103 of appeal) which they completely ignored. Further, on issue of SCN, the appellant's son approached the Range Supdt. and he has downloaded & gave the chart from CBIC portal giving the details of service tax deposited during F/Y 2016-17 (refer page 187 of appeal). In such a situation, there is no justification to ignore ....
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....f third party data i.e. ITR and 26AS. It is settled law that on the basis of 26AS the service tax demand cannot be raised. The appellant on the following judgments:- • Pushpam Pharmaceuticals Company [1995 (78) E.L.T. 401 (S.C.)] • Kush Constructions [2019 (24) G.S.T.L. 606 (Tri. - All.)] • Quest Engineers & Consultant Pvt. Ltd. [2022 (58 G.S.T.L. 345 (Tri. - All.)] • Rudra Services [Final Order No. 70459/2025 of CESTAT Allahabad dated 30.06.2025 in appeal No. ST/70500/2024] • In the matter at hand, since the directors of the appellant company were sick and confined to bed. the accountant though has deposited the service tax but has not filed ST-03 return therefore, in such a situation it cannot be said there is positive act on the part of appellant to evade tax hence, extended period is invokable and demand Show Cause Notice is barred by limitation. • It is therefore prayed appeal may kindly be allowed as SCN issued invoking extended period is barred by limitation. 3.3 Authorized representative re-iterated the findings recorded in the impugned order. 4.1 I have considered the impugned order along w....
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....ice Tax Rules, 1994 upon the appellant. 4.4 The appellant has filed the subject appeal primarily on the following grounds: (i) that, the impugned order is against the facts, evidence & law as well as remand directions; (ii) that, the adjudicating authority has not accepted deposition of service tax amounting to Rs. 3,72,097/- in 2016-17 towards the subject demand despite statement of the Director of the firm that the same was in r/o their liability for 2016-17; and (iii) that, the service of Handling (Loading, Unloading) & transportation of Chemical Fertilizer had been provided to Indian Potash Ltd. valued Rs. 12,19,139/- + Rs. 5,85,000/- which are exempt from service tax vide SI. No. No. 20 & 21 of Notification No. 25/2012-ST dated 20.06.2012 & 3/2013-ST dated 01.03.2013 4.5 First, I take up the issue of claim of the appellant regarding deposition of Rs. 3,72,097/- out of the admitted liability of Rs.5,37,220/-, I find that the appellate authority in his order dated 23.10.2023, Para 6.1.3 thereof, had categorically stated that "........the matter needs to be remanded for verification of the service tax deposited particulars and its specific use ... Thus, it was i....
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....der stated that ".........the party has still failed to adduce any substantial documentary evidence e.g. agreements signed with M/s IPL and M/s Tata Chemicals; copies of GRs issued by them, copies of packing lists, copies of RTO registration of the vehicles used, etc. with respect to their claim that they had transported chemical fertilizers". Thus, in matter I find that the appellant has failed to comply with respect to the explicit directions of the appellate authority in the de novo adjudication proceedings and have also failed to submit the same, on holistic terms, along with the subject appeal. Accordingly, I hold that this contention also fails to hold ground on factual and legal terms 4.7 In light of the foregoing facts and findings, I am of the concerted opinion that the subject appeal holds ground on facts as well as merits. Accordingly, I find no reason to interfere with the impugned Order-in-Original No. 13/AC/ST/SRE/2023 dated 26.12.2023 passed by the Assistant Commissioner, CGST, Division Saharanpur." 4.3 I find that neither the appellant nor revenue challenged order-in appeal No NOI-EXCUS-002-APP-332-23-25 dated 23.10.2023 by way of appeal to CESTAT. Hence....
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....ring the period 2016-17 and also copy of the e-receipt of the of payment made dated 05.05.2022. These are reproduced below: From perusal of the above it is observed that the appellant has deposited service tax against two distinct services provided by them as detailed in table below: Challan Service Tax (inclusive of Cess deposited) No Date Renting of Immovable Property Clearing and Forwarding Services 86158 20.04.2016 100 0 86156 20.04.2016 0 2868 10051 31.05.2016 34329 0 10049 31.05.2016 0 1541 12024 04.06.2016 0 3851 12012 04.06.2016 35066 0 34130 05.08.2016 75184 0 34146 05.08.2016 0 13547 40589 05.09.2016 0 7570 40596 05.09.2016 52636 0 52098 05.10.2016 51023 0 52117 05.10.2016 0 2789 68823 05.11.2016 0 3218 68833 05.11.2016 41249 0 76629 06.12.0216 40203 0 76635 06.12.2016 0 6923 Total 3,29,790 42,307 05.05.2022 1,44,262 23,903 Grand Total 4,74,052 66,210 From the details of the challans made available by th....
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.... imposed under Section 78, in respect of the demand computed over and above the amount of service tax (inclusive of cess) deposited by the appellant during the financial year 2016-17 i.e. Rs 3,64,105/- (= Rs 736,202-Rs 3,72,097). I do not find any merits in the reliance placed by the appellant on various decisions as those decisions were rendered in the facts of those case. The question of limitation is mixed question of fact and law and needs to be determined only after taking into account the facts of each case. On examination of facts, the ledger and payment details I find that the extended period has been rightly invoked against the appellant. 4.7 As appellant has not deposited the service tax by the due date demand for interest made as per Section 75 for the tax not deposited by the due date is also upheld. 4.8 Appellant has not challenged the order in appeal dated 23.10.2023 wherein penalty of Rs.40,000/- imposed under Section 70 read with Rule 7C of the Service Tax Rules, 1994 has been upheld. They could not have disputed the same in these proceedings. This penalty is thus upheld. 4.9 Summarizing my findings:- • Demand of Rs 7,36,202/- made against the ....
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....x Frasi Birer Full Ensinas4 - 24 Viser Pad 4 Dulu Sequer - - W 4 - Can # - 1 - ! 1 M Fm 1 NE # 1X 5 1 2 1 3 : . A 1 5 1 W 4 2 1 4 1 F R 1 A I : $ 2 1 1 1 3 5 % 0 1 I 1 20 1 - e C - . 4 2 2 N 2 - 4 A 2 " 2 0 S - . V - : TA 2 K en 1 C S L n V 5 . M 0 T UU S - E 1% H . - D = . Is alac 37:097// Amiche Document 3 HEAD OF ACCOUNTS Service Tax FOR THE 01-04-2016 TO 31-03-2017 Page No 1 DATE PERIOD FROM PARTICULARS DEBIT CREDIT BALANCE 01-04-2016 OPENING BALANCE 2968.00 20-04-2016 BA TO PAYMENT ID-2991848 ON LINE 100.00 2868.00 Cr BA TO PAYMENT ID-2991841 ON LINE 2868.00 0.00 01-05-2016 JA BY RENT/SOVE/16-17/01 S.TAX 16023.00 16023.00 |Cr JA BY RENT/SOVE/16-17/02 S.TAX 16856.00 32879.00 Cr HAND/TATA/16-17/03 STAX 1541.00 34420.00 Cr JA BY TENT/TATA/16-17/04 STAX 861.00 35281.00 |Cr JA BY RENT/IPL /16-17/05 STAX 589.00 35870.00 |C....