TMI Blog2017 (10) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... ble service as is corroborated by the invoices. Scrutiny of the reconciliation statement filed by appellant deserves consideration. Appellant shall cooperate with the authority to explain on the reconciliation statement for determination of proper liability - matter is remanded to the Adjudicating Authority to do the needful with the direction above and pass a reasoned and speaking order following due process of justice. Liability of tax in deposit - law requires that it is the receipt or the receivable amount in respect of provision of taxable service is only to be taxe - Held that: - ld. Adjudicating Authority shall scrutinize the receipts of the appellant from the services provided by the appellant and on examination of the materials ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f taxable service under the taxing entry of business support service - Held that: - Since the space was rented out by the appellant for commercial purpose, that was a case of renting of immovable property which became taxable w.e.f 01.06.2007. Tax has been paid from that date. Definition of Business Support Service including provision of infrastructural service was not applicable and therefore service tax was not payable thereon for the impugned period i.e., prior to 01.06.2007. Ld. Adjudicating Authority has to examine such averments of learned Advocate in readjudication proceeding. Appeal allowed in part and part matter on remand. - ST/52779/2014(DB) - ST/A/56411/2017-CU[DB] - Dated:- 15-6-2017 - Mr. D.N. Panda, Member (Judicial) An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Adjudicating Authority at page 26 of the adjudication order, determined the liability arbitrarily. 3. Appellant explains that incidence of the levy arose on provision of service declared to be taxable. Any receipt arising out of provision of such taxable service, shall only form part of the gross value of the taxable service and shall be taxable. Balance sheet or annual account is not the basis to impose tax on any taxable service provided. Therefore, revenue should have appreciated the figures submitted by the appellant and made reconciliation to arrive at the appropriate base for taxation. That not being done, an exercise is required to be made by the learned Authority to reach to a rational conclusion to tax the required amount to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Authority to do the needful with the direction above and pass a reasoned and speaking order following due process of justice. 6. On the second issue as Tabulated herein before, learned Counsel explains that the deposit is not liable to service tax. What that is liable to service tax is the gross value of consideration of the receipt in respect of provision of taxable service. Such proposition is recognized by law. It is further explained by ld. Counsel that the deposit are nothing but security received from the recipient of services to protect interest of appellant with the object that in the event the recipient of service fails to make the payment in respect of provision of service, either entire deposit or part thereof shall be app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as fees. 10. There is no ingredient of any franchise agreement when such document is examined. Ld. Authority has extracted in the show cause notice the definition of franchise agreements, as is apparent from page 139 and 140 of appeal folder. Revenue is not able to establish as to the essential ingredients of a franchise agreement. Apart from this, the agreement itself does not exhibit that there was a collaboration between parties to pursue a common object. Therefore, there shall not be any demand on the allegation of franchise agreements. Since appellant says that it has discharged the service tax under the category of renting of removable property for the period stated in the show cause notice dated 21/10/2009 that needs verification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty which became taxable w.e.f 01.06.2007. Tax has been paid from that date. Definition of Business Support Service including provision of infrastructural service was not applicable and therefore service tax was not payable thereon for the impugned period i.e., prior to 01.06.2007. Ld. Adjudicating Authority has to examine such averments of learned Advocate in readjudication proceeding. 14. With the aforesaid directions, limited remand of the matter is hereby done to learned adjudicating authority to carry out appropriate examination and pass a reasoned and speaking order following due process of justice. 15. In view of the facts and circumstance of the case and confusion in the taxing entries and the appellant having no intention t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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