Service Tax
TRT-2025-
Cestat New Delhi
Date:-03-05-24
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 03 May 2024
Parties: M/s. Jindal Steel & Power Ltd. Vs Commissioner of Central Excise and Service Tax, Raipur
Facts –
- The Appellant, M/s. Jindal Steel & Power Ltd., is engaged in providing various taxable services. Upon scrutiny of its records, it was observed that on aviation income, service tax has not been paid.
- Resultantly a Show Cause Notice was issued and service tax along with interest and penalty were proposed. The same was confirmed.
Issue –
- Whether the appellant defaulted in payment of service tax on aviation income received?
Order –
- The Tribunal observed that the documents on record establish that the income shown in the returns as well as balance sheet is one amount under the head of “aviation income” but the activities performed are two separate activities. One is Supply of Tangible Goods by chartering the aircraft and another is dry leasing the aircrafts along with all its control and possession. Thus, it becomes clear that the income earned by M/s. JSPL, Delhi from dry leasing arrangements is not chargeable to service tax during the relevant period but value for this activity is included in the impugned amount.
- It was mandatory for the department as well as the adjudicating authority to take note of the bifurcation which was provided by the appellant at very initial stage of filing reply to the show cause notice and also the C.A. Certificate dated 10.03.2016 filed subsequently. Since these relevant documents have been ignored by the authorities and there is no other evidence to show that the total amount shown in the balance sheets for the impugned period from April 2010 to March 2013 on which the service tax amounting to Rs.7,47,14,140/- has been confirmed against the appellant was an amount towards rendering the chartering activity/the service of supplying of tangible goods.
- Further, the commissionerate, Raipur had no jurisdiction to issue the show cause notice demanding the tax for such service which scrutiny was provided by the appellant’s unit in Delhi. Department has not produced any evidence to falsify the said contention and to show that those activities were rendered by M/s. JSPL, Raigarh. The tax on the amount receipts stands already discharged by M/s. JSPL Delhi. Thus, it becomes crystal clear that the present is not at all a case of tax evasion.
- The Appeal allowed.
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