Best Capital Services Limited Vs Commissioner, Central Excise & Central Goods & Service Tax, Jaipur (CESTAT Delhi)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, dismissed the appeal filed by M/s Best Capital Services Ltd. against the order of the Commissioner (Appeals), which had upheld the demand of service tax, interest, and penalty confirmed by the Additional Commissioner. The dispute related to the period from July 2012 to September 2015.
The appellant was registered with the service tax department for providing Banking Services and Legal Consultancy Services. During an audit, it was found that the appellant had also provided recovery agency services to M/s Barclays Investment & Loan India Ltd. but had neither declared such services nor paid service tax on the consideration received. It was further found that the appellant had incurred legal service expenses on which service tax under reverse charge mechanism had not been paid.
A show cause notice dated 12.02.2017 was issued proposing recovery of service tax amounting to Rs. 86,85,051 under the proviso to Section 73(1) of the Finance Act, 1994 along with interest under Section 75 and penalty under Section 78(1). The Additional Commissioner confirmed the demand, ordered recovery of interest, and imposed penalty equivalent to 50% of the unpaid tax for part of the period and 100% for the remaining period.
