9911796707
TMI Blog2025 (5) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Commissioner of Central Tax (Appeals), Raigad, Navi Mumbai. 2.0 Briefly stated the facts of the case leading to this appeal are as follows: - 2.1 On the basis of third-party data received from the Income Tax Department reflecting therein the value of 'Sale of Services' as declared in Income Tax returns filed by the appellants during the period 2015-16 and the taxable value of services declared in the ST-3 returns filed with the Service Tax Department, an enquiry was conducted on the difference in the value of services shown in these two records. Based on such differences in the gross value provided, the Department came to the conclusion that the appellants have failed to discharge the service tax liability of Rs.1,04,09,610/- on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 31.05.2016, out of the total demand of Rs.1,87,057/-, the learned Commissioner (Appeals) has held that the applicable rate of service tax during the relevant time was 14% i.e., from 01.06.2015 to 14.11.2015 and it was increased to 14.5% from 15.11.2015 to 31.05.2016 and hence, the correct amount of service tax payable was determined by him as Rs.1,82,290/-. The said amount of service tax had also been paid by the appellants along with interest of Rs.1,72,500/-. Therefore, the learned Commissioner (Appeals) by partly allowing appeal filed by the appellants had rejected the plea that penalty under Section 78(1) ibid has not been paid by the appellants. Feeling aggrieved with the said order of the learned Commissioner (Appeals), the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions are recorded in the specified records for the period beginning with the 8th April, 2011 upto the date on which the Finance Bill, 2015 receives the assent of the President (both days inclusive), the penalty shall be fifty per cent. of the service tax so determined : Provided further that where service tax and interest is paid within a period of thirty days of - the date of service of notice under the proviso to (i) sub-section (1) of section 73, the penalty payable shall be fifteen per cent. of such service tax and proceedings in respect of such service tax, interest and penalty shall be deemed to be concluded; (ii) the date of receipt of the order of the Central Excise Officer determining the amount of service tax under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils submitted by the appellants, the actual tax paid in respect of taxable services were confirmed by the Department and they were satisfied that the entire service tax liability has been properly paid by the appellants. Even in respect of the Service Tax demand on the taxable services provided to M/s Indian Oil Corporation Ltd. (IOCL), learned Chartered Accountant for the appellants had produced a work order issued by the IOCL dated 15.01.2015 for work contract of "Hydrojet cleaning and Dilution steam reboiler exchangers 11-E-1605 A/B/C/D/E/F/G tubes with 25000 PSI Machine of NCU at Panipat Naphtha Cracker", wherein it is specifically indicated that the service tax is applicable on 70% of the executed value. However, the appellants have pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -ST, has directed the field formations that while analysing ITR-TDS data received from Income Tax, a reconciliation statement has to be sought from the taxpayer for the difference and whether the service income earned by them for the corresponding period is attributable to any of the negative list services specified in Section 66D of the Finance Act, 1994 or exempt from payment of Service Tax, due to any reason. It was further reiterated that demand notices may not be issued indiscriminately based on the difference between the ITR-TDS taxable value and the taxable value in Service Tax Returns. 3. It is once again reiterated that instructions of the Board to issue show cause notices based on the difference in ITR-TDS data and service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us order after proper appreciation of the facts and details submitted by the appellants, squarely applies to this case. 5. In the above factual matrix of the case, I find that the provision of imposition of penalty under Section 78(1) ibid is not legally feasible in the absence of any specific grounds for suppression, fraud etc., and the same cannot stand the scrutiny of law. 6. In view of the above discussions and in the factual matrix of the case, the appeal filed by the appellants is allowed, by partially modifying the impugned order, to the extent of setting aside the portion of the order which has confirmed the penalty under Section 78(1) of the Finance Act, 1994 for an amount of Rs.1,82,290/-. ( Order pronounced in open court on 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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