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2018 (4) TMI 1166 - Commission - Service TaxMaintainability of application before Settlement Commission - VCES declaration - works contract service - Composition Scheme - whether Settlement Commission is the right forum to decide the issue involved in the appeal? - Held that: - though the applicant has not challenged the classification of services rendered, per se, it is apparent that the applicant having paid Service Tax under particular category at the full rate without any concession or exemption now seeks to admit a lesser tax liability for major portion of SCN period by opting for Composition Scheme leading to claim of excess payment of tax during the period from October, 2007 to March, 2012 - para 9.7 of Board's clarification dated 22-5-2007 that under the "Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 notified under Notification No. 32/2007-S.T., dated 22-5-2007 the Service Provider has to exercise an option prior to payment of Service Tax which is mandatory and clearly not a procedural lapse as claimed by the applicant. The Bench is of the considered view that Settlement Commission is not the right forum to decide upon contentious issues, by evaluating the evidences let in by the rival parties to the proceedings. Such an act would tantamount to the Settlement Commission adjudicating upon the notice, based on the submissions made by the rival parties to the proceedings. Further, in view of the complexities involved in the case, where there seems to be no convergence of views on the correct rate of tax, value on which tax is to be paid for determination of the correct tax liability, a detailed appreciation of all the facts and evidences is required, which could be best done only in departmental adjudication - It is now a well settled proposition that the Settlement Commission is not an adjudicating authority. It is only an arbitration forum where a dispute is settled in the interest of both the parties within the framework of law. The Bench, by virtue of the powers vested in it in terms of Section 32L of the Central Excise Act, 1944, made applicable to Service Tax matters under Section 83 of the Finance Act, 1994 sends the case back to the Adjudicating Authority for adjudication in accordance with the provisions of the law - matter on adjudication.
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