Custom, Excise & Service Tax Tribunal
Gurlein Manchanda vs Commissioner Of Service Tax on 22 January, 2015
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, WEST ZONAL BENCH AT MUMBAI
COURT NO. II
APPEAL NO. ST/16/10 Mum
ST/CO/125/11
Arising out of Order-in-Appeal No. V2(A)STC/33/2007/1840 dated 22.10.2009 passed by the Commissioner of Central Excise (Appeals), Mumbai I.
For approval and signature:
Shri. M.V. Ravindran, Member (Judicial)
Shri. P.R. Chandrasekharan, Member (Technical)
1. Whether Press Reporters may be allowed to see : No
the Order for publication as per Rule 27 of the
CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the :
CESTAT (Procedure) Rules, 1982 for publication
in any authoritative report or not?
3. Whether Their Lordships wish to see the fair copy : Seen
of the Order?
4. Whether Order is to be circulated to the Departmental : Yes
authorities?
Gurlein Manchanda
:
Appellant
Versus
Commissioner of Service Tax,
Mumbai
Respondent
Appearance Shri B.M. Shemlani, C.A. for appellant Shri R.K. Das, Asst. Commissioner (A.R.) For Respondent CORAM:
Shri. M.V. Ravindran, Member (Judicial) Shri. P.R. Chandrasekharan, Member (Technical) Date of Hearing : 22.01.2015 Date of Decision : 22.01.2015 ORDER NO.
Per : M.V. Ravindran This appeal is directed against Order-in-Appeal No. V2(A)STC/33/2007/1840 dated 22.10.2009. Revenue has also filed a Cross Objection against the appeal filed by the appellant.
2. Heard both sides and perused the records.
3. On perusal of the records, we find that the issue involved in this case is regarding service tax liability on the appellant for the period October 2002 to September 2004.
4. It is the submission of the learned C.A. that the service tax liability and interest were paid on 30.10.2004 on having pointed out by the departmental authorities after visiting their premises. His further submission is that the appellant had entertained bonafide belief that they were not covered under Event Management Services as they are rendering services in respect of marriages, hence penalties imposed on them be set aside.
4. Learned D.R. appearing for the Revenue would submit that the appellant after getting registered in September 2003 did not pay service tax due and after pointed out by the department, they discharged the tax liability. He also submits that the claim of Extra Ordinary Tax Payers Friendly Scheme extended to them is also incorrect.
5. It transpires from records that the service tax liability and interest thereof stand deposited by the appellant on 30.10.2004 and is not contested by them neither before the first appellate authority nor before us; it is seen the show-cause notice has been issued on 31.10.2005. In our considered view, the discharge of service tax on being pointed out, by appellant gets covered under the provisions to Section 73(3) of the Finance Act, 1994. The said section specifically provides that no show-cause notice is required to be issued if the assessee discharges the service tax and interest liability on his own ascertainment or on being pointed out by the Central Excise Officers. We hold that the said Section will be applicable to this case. We also find that the appellant could have entertained a bonafide belief that the services rendered by them is of Event Management of the marriage may not be covered under the tax net. In our considered view, this is a fit case for invoking provisions of Section 80 of the Finance Act, 1994. By invoking the said provisions of Section 80 of the Finance Act, 1994, we set aside the penalties imposed by the lower authorities. We would also like to record the argument taken by the appellant before the lower authorities that the Extra Ordinary Tax Payers Friendly Scheme is correct and applicable in this case; as has been settled by the Union of India Union of India v. Amit Kumar Maheshwari - 2009 (13) STR 119 (Raj).
6. Appeal is allowed by setting aside penalties imposed on the appellant. Cross Objection filed by the department is also disposed of.
(Dictated in open Court) (P.R. Chandrasekharan) Member (Technical) (M.V. Ravindran) Member (Judicial) nsk ??
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