Case Law Details
Mahanadi Coalfields Limited Vs Commissioner of CGST & CX (CESTAT Kolkata)
The only issue involved in this appeal is whether the appellant is liable to deposit service tax under Security Service under reverse charge when the entire service tax amount has been reimbursed to the service provider who has deposited the same with the Govt. Treasury as claimed by the appellant.
I find that the original authority while confirming demand has observed that since the tax paid challans copies do not have legible bank seal, the same could not be relied. I find that the appellant has also submitted the payment confirmation from the CBEC website showing the challan wise tax payment. They have also submitted the calculation details duly supported with certificate issued by the service provider wherein it has been stated that entire tax amount has been deposited with the treasury. No finding has been given by the learned Commissioner (Appeals) with regard to the submission of said certificate and challan details. Instead the learned Commissioner (Appeals) has reiterated the findings given by the lower authority.
On perusal of the calculation details submitted by the appellant before both the authorities, I find that the payment is duly supported by way of confirmation from the CBEC website which is on record. Neither the tax calculation details nor the payment confirmation has been disputed by both the authorities below. The only reason assigned by the lower authority for not accepting the said challans is that same did not bear legible bank seal. I find that since the said challans are supported with CBEC website payment confirmation, there is no reason to doubt the payment of tax. Considering the totality of the facts of the case and that the assessee is a Public Sector Undertaking, there is no reason to confirm the demand when service tax stands already paid and there is no loss of revenue to the Exchequer.
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