Custom, Excise & Service Tax Tribunal
Vikas Infocomm vs Lucknow on 4 September, 2019
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
ALLAHABAD
REGIONAL BENCH - COURT NO.I
Service Tax Appeal No.55910 of 2014
(Arising out of Order-in-Appeal No.89-90-ST/APPL/LKO/2014 dated
13/08/2014 passed by Commissioner (Appeals), Customs, Central Excise &
Service Tax, Lucknow)
Vikas Infocomm .....Appellant
(Purana Mill Compound,
Agra-Aligarh Road, Hathras)
VERSUS
Commissioner (Appeals), Customs,
Central Excise & Service Tax, Lucknow .....Respondent
(Hall No.2, 8th Floor, Kendriya Bhawan, Aliganj, Lucknow-226024) APPEARANCE:
Ms. Archi Agarwal, Advocate for Appellant Shri Rajeev Ranjan, Authorized Representative for Respondent CORAM :
Hon'ble Mrs. ARCHANA WADHWA, MEMBER (JUDICIAL) Hon'ble Mr. ANIL G. SHAKKARWAR, MEMBER (TECHNICAL) DATE OF HEARING : 04 September, 2019 DATE OF DECISION : 04 September, 2019 FINAL ORDER NO.71713/2019 PER: ARCHANA WADHWA After hearing both the sides duly represented by learned counsel Ms. Archi Agarwal on behalf of the appellant and learned A.R. Shri Rajeev Ranjan on behalf of the revenue, we note that the appellant is engaged in sale purchase of SIM Card of M/s Reliance on commission basis.2 Customs Appeal No.55910 of 2014
Revenue raised show cause notice dated 13.10.2010 raising demand of duty Rs.30,656/-(thirty thousand six hundred fifty six) for the period 2009-2010. The said show cause notice stands adjudicated by the lower authorities confirming the demand and imposing penalties.
2. The contention of the learned advocate appearing for the appellant is in respect of quantification of the demand. She submits that the commission received by them during the relevant period was only to the extent of Rs.1,93,820/- (one lakh ninety three thousand eight hundred twenty) and not Rs.2,97,629/-(two lakhs ninety seven thousand six hundred twenty nine), which the Revenue has adopted for the purpose of computation of service tax amount. She submits that according to them, tax liability would be around 20284/-(twenty thousand two hundred eighty four) which stand deposited by them alongwith interest of Rs.2464/-(two thousand four hundred sixty four). She also draws our attention to the chart appearing on the records and clarifies that an amount of Rs.40760/-(forty thousand seven hundred sixty) was deducted by M/s Reliance on account of non-satisfactory services by the appellant. As such, as per records the commission received was only Rs.1,93,820/-(one lakh ninety three thousand eight hundred twenty). Accordingly she prays for reducing the demand to Rs.20284/-(twenty thousand two hundred eighty four) and to set aside the penalty also.
3. After hearing learned A.R. and having gone through the chart we find that non-payment of commission to the respondent of Rs.40,760/- by M/s Reliance on account of non-satisfactory services of the appellant based upon the complaints of the customers has not been taken into account. As such we confirm the re-quantification of 3 Customs Appeal No.55910 of 2014 demand to Rs.20,284/- which already stand deposited by the appellant along with interest of Rs.2464/- and set aside the balance demand.
4. As regards penalty, we are of the view that in the absence of clarity on the subject, and the appellant being a small time franchisee of M/s Reliance, may not be aware of tax liability, no mala fide can be attributed in the absence of any evidence to them. Accordingly we set aside the penalty in toto. Appeal is disposed of.
(Dictated and Pronounced in open Court) Sd/-
(Archana Wadhwa) Member (Judicial) Sd/-
(Anil G. Shakkarwar) Member (Technical) akarshak