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.