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2017 (9) TMI 269 - CESTAT NEW DELHIEvasion of service tax - clandestine rendering of services - it was alleged that has collected the Service Tax from its clients but not deposited the same in the Government exchequer - duplicate invoices - Held that: - When recipients are corporate entities, certainly they will have to make the payment through banking channel by showing in their books of account. The Department has not made any attempt to verify from their books of account that any payment was made other than the banking channel. From the record, it also appears that the parallel/duplicate invoices were the printed copies taken from the computer where they were found. There might be several copies printed by the concerned staff which were remained unsigned. When original invoice is available in computer and not duplicate copy, then no addition can be made on the basis of extra printed copy - we find no justification to demand the Service Tax on the basis of so called parallel/duplicate invoices and the same is hereby set aside. Unregistered office - Held that: - the assessee-Appellants were registered in the name of M/s Varsed Detective and Security Pvt. Ltd. at Gurgaon and opened another office in Bhiwadi in the name of M/s Varsed Services, which is a component of the main company. M/s Varsed Services was doing the business activity in the name of the main company with the same registration number. So, there is no scope for escapism. From the record, it appears that M/s Varsed Services has not received any payment or order. Whatever orders or payments were received are accounted in the main company. Hence, the second company may be slightly different in nomenclature but can be considered as a branch unit, especially when no business was carried out in its name. The services provided to SEZ were exempted from payment of Service Tax under Section 93 of the Act by virtue of Notification No. 4/2004 dated 31.03.2004. The exemption was available to SEZ developers and the units in SEZ. In the instant case, the assessee-Appellants had not charged or collected any Service Tax from the SEZ, so the same was not paid. Cleaning services - Held that: - assessee-Appellants were also providing cleaning services to Ajmer Fort at Jaipur which is an archaeological structure. The same cannot be considered as commercial or industrial unit. It was exempted from the clutches of the Service Tax as per the order supplied by the Archaeological Survey of India. In the instant case, it appears that the Commissioner has made addition to Service Tax demand on the basis of parallel/duplicate invoices which is not sustainable in the eyes of law. As stated above, the income was taken on accrued basis, but not on the actual basis. Regarding the SEZ services, it appears that for SEZ units, namely, DLF Kolkata; DLF IT Park, Hyderabad and DLF Rai Project, the assessee-Appellants have raised the invoices but when tax was not received the same was not paid. There is nothing on record to show that the assessee-Appellants received the Service Tax raised in the invoices. It may be mentioned that no Service Tax was charged during the period 2008 to 2010. The demand of Service Tax of ₹ 5,74,624/- in this regard is bad in law and the same is hereby set aside. Appeal allowed - decided in favor of appellant.
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