Custom, Excise & Service Tax Tribunal
Meghalaya Urban Dvelopment Authority vs Shillong on 24 October, 2024
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE
TRIBUNAL, KOLKATA
EASTERN ZONAL BENCH : KOLKATA
REGIONAL BENCH - COURT NO.2
Service Tax Appeal No.76039 of 2014
(Arising out of Order-in-Original No.ST/SHILLONG NO.04/2014 dated 31.03.2014
passed by Commissioner of Central Excise, Shillong.)
M/s. Meghalaya Urban Development Authority
(MUDA Shopping Complex, Police Bazar, Shillong-793001, East Khasi Hills District,
Meghalaya.)
...Appellant
VERSUS
Commissioner of Central Excise & Service Tax, Shillong
.....Respondent
(Morello Compound, M.G. Road, Shillong-793001.) APPEARANCE Mr. Philemoon Nongbmi, Advocate for the Appellant (s) Shri D.Sue, Authorized Representative for the Revenue CORAM: HON'BLE SHRI R. MURALIDHAR, MEMBER(JUDICIAL) HON'BLE SHRI RAJEEV TANDON, MEMBER(TECHNICAL) FINAL ORDER NO. 77516/2024 DATE OF HEARING : 24.10.2024 DATE OF DECISION : 24.10.2024 Per : R. MURALIDHAR :
This Appeal has been filed by M/s. Meghalaya Urban Development Authority being aggrieved by the confirmed demand of Rs.37,02,576/- along with interest and equal amount of penalty under Section 78. One more penalty of Rs.5,000/- has been imposed under Section 77(2).
2. The Ld.Counsel appearing for the Appellant submits that after the adjudication order was passed, in order to put an end to the litigation, the Government of Meghalaya took a decision to pay the entire amount of confirmed demand. The payment details was produced before the Bench when the matter came up for Stay Hearing on 10.09.2015. This Bench vide Stay Order No.SO/75917/2015 dated 10.09.2015 after noting that Service Tax of Rs.37.02 Lakhs has been deposited, has granted the stay.
3. The Ld.Counsel submits that the Appellant is not disputing the confirmed demand. He prays that the interest and penalties may be 2 Service Tax Appeal No.76039 of 2014 waived. He submits that the Appellant is a statutory body working under the Government of Meghalaya. Therefore there could have been no intention on their part to evade payment of Service Tax since they have made the payment after seeing the order. He further submits that as no proper guidance was given to the Appellant about the SVLDRS Scheme, they could not opt for the same. Had they opted for this scheme, they would not have been required to pay interest and penalty. Considering these facts, he prays that the interest and penalties may be waived.
4. Heard both sides and perused the appeal papers.
5. We find that the Appellant is not disputing the confirmed demand. This Bench vide Stay Order No.SO/75917/2015 dated 10.09.2015 has noted as under:-
"3. The ld.AR for the Revenue brought to our notice that just before passing of the order by the adjudicating authority has Applicant had deposited the entire amount of Service Tax of Rs.37.02 Lakhs. In support, relevant challans are enclosed."
6. Therefore, admittedly the confirmed demand amount has already been paid by the Appellant. However, we do not see any provision giving the power to the Tribunal to waive the interest on the confirmed demand which now stands paid by the Appellant. Therefore, we hold that the Appellant is required to pay the interest.
7. We also note that the Appellant is fulfilling the sovereign functions on behalf of the Government of Meghalaya. Therefore, we set aside the penalties imposed under Section 78 and 77.
8. The Appeal stands disposed of thus.
(Dictated and pronounced in the open Court.) Sd/ (R. MURALIDHAR) MEMBER (JUDICIAL) Sd/ (RAJEEV TANDON) MEMBER (TECHNICAL) sm