Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2023 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (12) TMI 309 - CESTAT KOLKATAShort payment of service tax - turnover shown by them in the ST-3 Returns was lower than the turnover shown by them in their Income Tax and Balance Sheet - HELD THAT:- Coming to the Appeal filed by the Revenue, a cursory glance of the Show Cause Notice would clarify that the same was issued for the period which is even beyond the extended period of five years. This shows that the proper care was not taken by the Department while issuing the Show Cause Notice. The Show Cause Notice has been issued merely on the ground that the income shown by the Appellant in their P & L Account is higher than the turnover declared in the ST 3 Return - the Adjudicating Authority carried out thorough verification and has given reasoned Order for dropping the demand as well as confirming the demand. Therefore, there are no reason to interfere with his Order in respect of the dropped demand of Rs.73,07,023/-. Accordingly, the Appeal filed by the Revenue is dismissed. Demand of Rs.25,70,758/- - Adjudicating Authority has held that the services provided by the assessee can not be termed as the ‘Services provided by the sub-contractor to the main contractor - HELD THAT:- The submission of the assesse is agreed upon that till the new clarification was given on 23/08/2007, the Revenue was bound by the earlier clarification issued by the CBIC. Therefore, the demand prior to 22/08/2007 is legally not sustainable. Extended period of Limitation - HELD THAT:- The Department in its over-enthusiasm has issued the Show Cause Notice even for the period prior to five years. The Show Cause Notice has been issued for Rs.98.77 Lakhs whereas after thorough verification and reconciliation, the Adjudicating Authority has dropped the demand of Rs.73.07 Lakhs. Even in respect of balance 25.7 Lakhs confirmed demand, we find that the clarification given on 23/08/2007 has been applied for the transaction carried out between April 2006 to 31/03/2008 - the demand for the extended period is legally not sustainable and confirmed demand for the extended period is set aside on account of limitation also. Thus, the Appellant is required to pay the Service Tax on sub-contract work (map making) undertaken by them for the main contractor between the period October 2007 to March 2008 only. It is noted from the OIO that the amounts paid by the assesse during the proceedings have been appropriated. The amount payable, if any, for the period October 2007 to March 2008 is required to be adjusted against such appropriation. The Appeal filed by the Assessee is disposed of.
|