TMI Blog2013 (8) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... not a bar to passing any appropriate order in accordance with law if any revenue loss was demonstrable - evidence should be disclosed to the assesse and they should be given an opportunity to present their defense. Service tax Rules do not prescribe the method of doing any business or maintaining account - The approach of the authorities should facilitate smooth conduct of business by reducing manual work for every assessee if they arrange to do so - The contention that credits made in the books of accounts of the assesse in the name of an intermediary do not amount to refund to the intermediary could not be accepted – If Revenue had any doubt that the full amount was not being refunded and refund from government was claimed for more tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y for subsequent months as per provisions of Rule 6(3) of Service Tax Rules, 1994. 4. In the case before us, there are two types of refunds involved. In one type of cases, refunds were granted directly to the insured. In the other type of cases, the refunds were granted through the intermediaries to the insured. 5. The Revenue doubted the correctness of the amounts adjusted in ST-3 returns towards refund for the period Oct.'09 to Sept.'10 and called for verification of the amounts to ensure that the adjustments were correctly claimed. Revenue was not satisfied with the documentary proof produced by the appellant and, therefore, a Show Cause Notice was issued and adjudicated confirming demand of Rs.2,83,97,950/- against the appellant for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g requested because the volume of such transactions is very huge. While showing the entries in bank accounts for refunds may not be difficult, it is difficult to retrieve the vouchers based on which each such refund was made. The counsel points out that it is such request from Revenue which made this process of verification very cumbersome and which finally resulted in the impugned order. 8. In the case of refunds through the intermediaries, his contention basically is that they maintain accounts in their ledgers in the name of each intermediary. The intermediaries keep making advance deposit into the accounts and when a policy is contracted through an intermediary, the premium and service tax are debited in such accounts. If any policy i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Final Order No.667, 668/2012, dated 12.06.2012 to the adjudicating authority for re-verification of the entire matter as per the guidelines in the said order. 10. The Ld AR for Revenue submits that the refunded money still remains with the appellant only. Since the money is credited in their books of accounts in the folios in the name of the concerned intermediary, there is no return of the money to the intermediary. Unless it is proved that service tax is refunded to the insured, adjustment under Rule 6(3) of Service Tax Rules cannot be allowed. Ld AR also expressed doubts whether the full amount of service tax is being refunded to the insured and if full refund is not made, adjustment of service tax in ST-3 returns in excess of amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they arrange to do so. 13. Thus, we are in agreement with Final Order No.667,668/12, dated 12.06.2012 passed by Tribunal in Appeal Nos.ST/413/2010 and ST/13/2012. We follow the same order and remit this matter also to the adjudicating authority, after setting aside the impugned order, for de-novo adjudication considering the observations of the Tribunal in that order and this order. We make it clear that this order is not a bar to passing any appropriate order in accordance with law if any revenue loss is demonstrable. Needless to say that such evidence should be disclosed to the appellant and they should be given an opportunity to present their defense. 14. Stay application and appeal are disposed of. (Dictated and pronounced in open ..... X X X X Extracts X X X X X X X X Extracts X X X X
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