Service Tax Demand due to Mismatch in Form 26AS & STR: CESTAT quashes Order since Tax was paid in Next Year [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi bench, has quashed a service tax demand due to mismatch in the form 26AS and Service Tax returns considering the fact that the assessee has paid the service in the succeeding years.

The assessee, Mr. Mohan Kumar Tiwari preferred an appeal against the order of the service tax department. The department had issued a notice demanding service tax on the ground that the turnover of the appellant as per Form 26AS is higher than the turnover as per the ST returns and the financial records maintained by the appellant. Subsequently, penalty was also imposed on the assessee. The department also imposed equal penalty under Section 78 of the Act, and penalty imposed under Section 70 for late filing of return, was reduced to Rs.500/- for the period October, 2013 to March, 2014. Penalty amounting to Rs. 10,000/- imposed on the appellant under Section 77(1)(c) was upheld.

The appellant contended that actually there is no service tax short paid.

Quashing the demand and penalty, Mr. Anil Choudhary, Member (Judicial) observed that “I find that there is no case of short payment of service tax as the appellant has paid the service tax in the next financial year. Accordingly, the demand and penalty under Section 78 is set aside. In the facts and circumstances of the case, penalty under Section 77(1)(c) as well as under Section 70 is also set aside.”

To Read the full text of the Order CLICK HERE

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