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2016 (5) TMI 449 - CESTAT NEW DELHI

2016 (5) TMI 449 - CESTAT NEW DELHI - TMI - Demand of Service tax - Deposits made by the appellant’s customers, in anticipation of the services to be received by them throughout the year - Appellant submitted that the deposits/advances made by the customers have fully discharged the service tax on the same either in the year of deposit or in the subsequent year, thus not calling for any further service tax. Also the part of the said demand is on the account of interest and to the extent of aroun .....

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of such service tax as rightly, at this prima facie stage, accrued as interest liability against the appellant. In as much as, the appellant has not pleaded any financial hardship and we have observed against the assessee on the said legal issue for payment of interest the applicant is directed to deposit an amount of ₹ 60 lakhs towards the said liability within a period of six weeks from today.

Demand of Service tax of ₹ 2.34 crores - Appellant was paying service tax as p .....

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f service tax under the category of renting of immovable property was being accepted by the Revenue without any objection, no malafide can be attributed to the appellant.

Otherwise also it is found that the appellant is a central Government undertaking in which case it cannot be said at this prima facie stage that they were indulging in evasion of duty by suppressing any facts or by misstatement, with an intention to evade payment of duty. On this ground also prima facie case is found .....

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ry stayed during the pendency of the appeal. - Application No. ST/Stay/53106/2014 In Appeal No. ST/52779/2014-ST(DB) - Stay Order No. 50386/2016-ST(DB) - Dated:- 15-3-2016 - MS. ARCHANA WADHWA, MEMBER (JUDICIAL) AND SHRI B. RAVICHANDRAN, MEMBER (TECHNICAL) For the Petitioner : Shri S.C. Kamra & Shri G.K. Mahajan, Advocate For the Respondent : Shri Amresh Jain, DR ORDER PER ARCHANA WADHWA: After hearing both the sides we find that service tax of around 5.17 crores has been confirmed against a .....

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container by rail and pest control cleaning services etc. Apart from the said services, he is also providing another services which are either not taxable or exempted. 3. Out of the total demand, demand of ₹ 1.12 crores stands confirmed by comparing the ST-3 return with the income as shown in the balance sheet. Though, we find that the appellant has tried to explain such differences, which have occurred on account of providing non taxable services, or the reflection being on accrual basis .....

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n anticipation of the services to be received by them throughout the year. Ld. Advocate explains that they have a system of getting deposits / advances from their customers and such deposits so made by them are utilized by debiting the same towards the consideration in respect of services provided by them. In some cases at the year-end, certain amounts are left with them which are carried forward for the next year and stands debited toward consideration for the services provided in the next year .....

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nfirmed on the ground that in terms of section 67 of the Finance Act any advance received from the customers for the services to be provided are required to be discharged service tax liability at that point of time only. 5. In as much as the appellant has discharged the service tax subsequently at the time of providing service there is a loss of interest to the Revenue to the extent of around ₹ 61.69 lakhs. 6. We prima facie agree with the ld. Advocate that the deposits / advances made by .....

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as much as, the appellant has not pleaded any financial hardship and we have observed against the assessee on the said legal issue for payment of interest we direct the applicant to deposit an amount of ₹ 60 lakhs towards the said liability within a period of six weeks from today. 7. As regards the third demand of ₹ 2.34 crores we find that the appellant entered into an agreement with M/s. Words Window and SICAL for operating the ICD & CFS services on behalf of the assessee and t .....

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