Order Date – 26 May 2023

Parties: M/s. M.P. Audyogik Kendra Vikas Nigam (Indore) Ltd. Free Press House Vs Principal Commissioner of Central Goods & Service Tax and Central Excise

Facts – 

• The Appellant, M/s. M.P. Audyogik Kendra Vikas Nigam (Indore) Ltd. Free Press House, is engaged in providing taxable services under the category of “Renting of Immovable Properties, Manpower Supply Services, Legal professional & Consultancy & Rent-a-Cab Services etc.
• On examination of balance sheet and ST-3 returns it was found that the appellant has suppressed taxable value with respect to legal, professional and consultancy expenses and security expenses on which service tax to be paid under RCM.
• Accordingly, two show cause notices were issued for the period 2012-2013 till 2015-2016 and for the subsequent period April 16 to June 17.

Issue – 

• Whether the appellant has suppressed taxable value??

Order – 

• The Tribunal observed that the show cause notice does not contain the gist of allegations for raising the demand on RCM basis. The provisions of service tax read with the rules thereunder do not provide for raising of demand on the basis of apparent difference in the figure of expenses in the balance sheet and the amount offered for service tax in the ST-3 Returns.
• Further it was observed that the demand under service tax on reverse charge mechanism, has to be worked out and calculated transaction wise-wise and invoice-wise. In absence of such exercise, it was held that the show cause notices is vague and fit to be held mis-conceived and mis-directed.