Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

FRAUD BY CONSULTANT

Service Tax - By: - Mr. M. GOVINDARAJAN - Dated:- 14-12-2015 Last Replied Date:- 9-2-2016 - The compliance of tax provisions either in direct tax or indirect taxes is difficult for any individual or a business entity at all times following the changes occurred now and then. For this purpose the professionals or consultants in the particular area are appointed for the purpose of compliance of the provisions i.e., calculation of taxes, payment, filing returns, maintenance of records, rendering adv .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ws. In Commissioner V. Ganesh Enterprises - [2015 (9) TMI 162 - CESTAT MUMBAI] it was held that no penalty could be imposed for the fraudulent act on the part of a consultant and appellant was under bona fide belief that the Consultant has deposited an amount towards service tax liability. In Hemangi Enterprises V. Commissioner of Central Excise, Pune - I - 2015 (10) TMI 1732 - CESTAT MUMBAI the appellants are rendering services under Manpower Recruitment or Supply Agency Services . The Departme .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lowing: The appellant appointed one Shri Deepak Joshi as their consultant to look into the regular activities of discharge of service tax and also for payment of the service tax; The appellant paid various amounts in cash by withdrawing from the bank and giving it to the Consultant; The consultant used to file service tax returns with its challans indicating proper payment of tax liability; The consultant played fraud on the appellant and used to fabricate challans by showing more amounts paid t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ppellant was in the knowledge of the activity undertaken by the Consultant; The statement of the consultant clearly indicated that the appellant had paid only 50% of the amount as has been recorded in the said statement; The cash book and the certificate of the Chartered Accountant cannot be considered as they were not before the authorities and the withdrawals from the banks was not on record; No criminal complaint has been filed by the appellant against the consultant; It is incomprehensible t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d pocketed the amounts of service tax which has been paid by the appellant to him to credit to the Government account. The Tribunal found the following: The appellant insisted the consultant to pay the amount of service tax by cheque but the consultant convinced them that the time taken for realization of cheque is more while in the case of cash payment; The appellant withdrew cash from the bank and given them to the consultant for discharging the service tax which is proved by the cash book pro .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e tax to the department. The Tribunal found that the Consultant has defrauded the appellant by breaching TR-6 challans. The appellant had discharged the entire service tax liability and interest thereon. The Tribunal considered the submissions of the Revenue that the consultant has been appointed as an agent and reading of Section 238 of the Contract Act, he becomes liability on the action of the Consultant. The said section talks about the vicarious liability only in the case of the principal i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version