Gupta Color Lab Vs Commissioner of CGST & Central Excise (CESTAT Delhi)
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) allowed the appeal filed by the appellant and set aside the demand of service tax, interest, and penalties raised on activities relating to printing and developing photographs.
The appellant was registered with the service tax department but had not filed ST-3 returns. Based on third-party data, the Department found that the appellant had received amounts towards photography services during the period 2016-17 without payment of service tax. A letter dated 14.12.2020 was issued seeking documents including profit and loss accounts, Form 26AS details, and copies of work orders for the period April 2016 to June 2017. The appellant furnished copies of profit and loss accounts, Form 26AS, and income tax returns. On verification of these documents, the Department concluded that service tax liability of Rs.9,52,319 arose against the appellant.
A show cause notice dated 20.07.2021 was issued invoking the extended period of limitation. After adjudication, service tax demand of Rs.4,62,443 was confirmed along with equivalent penalty. An additional penalty of Rs.60,000 was imposed under Section 70 of the Finance Act, 1994. The Commissioner (Appeals) upheld the adjudication order, following which the appellant approached the Tribunal.
