TMI Blog2018 (10) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... e us of the ledger accounts do not indicate that the amounts which were shown as selling expenses are not only freight charges, leave alone the figures as reported by the appellant in the audited balance-sheet are totally different from the figures on which demands have been raised. Revenue has not been able to justify the demand in the show-cause notice itself and despite the request of the appellant to give them the documents to defend their case, Revenue was unable to produce other relied upon documents even before us. Appeal allowed - decided in favor of appellant. - ST/484/2008-DB - A/31007/2018 - Dated:- 8-8-2018 - Mr. M.V. RAVINDRAN, MEMBER (JUDICIAL) And Mr. VENKATA SUBBA RAO, MEMBER (TECHNICAL) Mr P. Prabhakar Murth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not given to them. Learned counsel today produces the audited balance-sheets for the period 2004-05 and 2005-06. After taking us through balance-sheets he draws our attention to the fact that under the Head loading, transportation and other selling expenses, the figures indicated in the balance-sheet are: for the year 2004-05 ₹ 2,72,66,830/- and ₹ 1,78,74,995/- for the year 2005-06. While the lower authorities have come to a conclusion that the freight charges of the appellant is ₹ 1,52,68,786/- for the year 2004-05 and ₹ 3,46,38,087/- for the period 2005-06 totalling to ₹ 4,99,06,873/-. He would draw our attention to the Heading under which the figures in the balance-sheet are reported and submits that it inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of service tax liability of approximately ₹ 50,90,501/- has been confirmed on the allegation as per paragraph No 7 of the show-cause notice which we reproduce: 7. On verification of the balance sheets and ledgers of the assessee it is noticed that they had incurred an amount of ₹ 4,99,06,873/- towards carriage inward and outward during the period January, 2005 to March, 2006. The total service tax payable is works out to ₹ 49,90,687/- and education cess of ₹ 99,814/- as detailed below: Period Freight incurred (value of taxable services) Rate of service tax Service tax payable Ed. Cess @2% on the service tax payable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in the audited balance-sheet are totally different from the figures on which demands have been raised. In our view, revenue has not been able to justify the demand in the show-cause notice itself and despite the request of the appellant to give them the documents to defend their case, Revenue was unable to produce other relied upon documents even before us. On the other hand the appellant has produced balance-sheets which indicate different figures that also not only of freight charges but also of other expenses, which remain undisputed. 6. In view of the foregoing, in the peculiar facts and circumstances of this case, we hold that the impugned is unsustainable and liable to be set aside and we do so. The impugned order is set aside a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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