Service Tax
TRT-2025-
Cestat Ahmedabad
Date:-02-11-22
In:-
Issue Favourable to Tax Payer ?:-
Order Date: 02 November 2022
Facts:
- The appellant, M/s. M R Patel & Sons have filed this appeal against the confirmation of the demand of service tax and imposition of penalty.
- It was pointed out that Order-In-Original confirmed a demand of Cenvat credit amounting to Rs.21,11,137/-. The said order also confirmed a demand of Rs.46,453/- under the head of Business Auxiliary Service, the penalty of Rs.21,11,137/- was imposed under Section 78 of the Finance Act, 1994, which is also imposed under Section 76,, 77 and 78 of the Finance Act.
Issue:
- Whether demand and penalty imposed upon the Appellant is sustainable ?
Order:
- The authorities found that that the sole demand upheld by the learned Commissioner (Appeals) relates to the transaction between ‘KCT & Bros and the appellant. Both of them together had taken up a contract with GEB and the proceeds received from GEB were shared by ‘KCT & Bros’ with the appellant.
- The Authorities also observed that the demand of service tax has been made in respect of such receipts. It is seen that the Order-In-Original as well as the impugned order has simply rejected the documents produced by the appellant without any reason.
- In these circumstances, the demand cannot be sustained and consequently, the penalty also cannot be sustained
- Appeal is consequentially allowed.
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