Mira Textiles and Industries Private Limited Vs Commissioner of GST and Central Excise (CESTAT Chennai)
The appellant, a manufacturer of corrugated paper cartons and paper trays, challenged the Order-in-Appeal dated 27.10.2016 concerning service tax liability under the reverse charge mechanism (RCM) on Goods Transport Agency (GTA) services for the period April 2012 to March 2014. The Revenue alleged that the appellant had failed to pay service tax under Notification No. 30/2012-ST dated 20.06.2012 after verification of its accounts.
The appellant submitted that, upon the short payment being pointed out, it paid the entire tax demand of ₹4,84,990. During adjudication, the demand was confirmed to the extent of ₹4,20,811 and an equal penalty was imposed under Section 78 of the Finance Act, while the balance amount deposited was appropriated towards interest, which was also paid. The Commissioner (Appeals) reduced the penalty to 50% under Section 78(1), but the appellant continued to challenge the invocation of the extended period of limitation and the penalty.
The appellant argued that there was no suppression or wilful misstatement because the entire demand had been computed from figures available in its balance sheet and profit and loss account. It further submitted that the position was revenue neutral since it was entitled to avail credit of the tax paid. The Revenue contended that the appellant had deliberately concealed information with intent to evade payment of duty.
