The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the service tax demand which does not specify the service category in the show cause notice (SCN).
K. Balakrishnan, the appellant assessee was a holder of Service Tax Registration for provision of certain services like ‘Maintenance of Golden Jubilee Park’ to Neyveli Lignite Corporation, Neyveli and the assessee had mainly provided services falling under the categories of management, maintenance or repair service, manpower supply agency service, and commercial or industrial construction service.
The assessee appealed against the order passed by the Commissioner of Central Excise (Appeals) for confirming the demand Service Tax on the taxable value for the taxable services provided by the assessee during the period 2008-09 under provison to Section 73(1) of the Finance Act, 1994.
J. Shankarraman, the counsel for the assessee contended that the Show Cause Notice does not allege the category under which the assessee was eligible for Service Tax.
Also submitted that only a person providing any taxable service as defined under Section 65(105) of the Finance Act was eligible for Service Tax for the consideration received and that too from specified dates.
N. Satyanarayana, the counsel for the department contended that the assessee had failed to pay the Service Tax by the due date, had contravened Section 70 of the Finance Act read with Rule 7 of the Service Tax Rules, 1994, had failed to assess the Service Tax due correctly on the taxable services provided by them.
The Bench observed that there was no specific service alleged against the assessee mentioned in the SCN, as having been rendered by it, rather, a consolidated tax liability had been worked out, which makes it indefensible and relied on in the case of T.M.P. Manoharan & Co.
The two-member bench comprising P Dinesh (Judicial) and Ajit Kumar (Technical) quashed the service tax demand against the assessee while allowing the appeal filed by the assessee.
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