Case Law Details
J M Manpower & Security Pvt. Ltd. Vs Commissioner of Central Excise & Service Tax (CESTAT Allahabad)
The case of J M Manpower & Security Pvt. Ltd. Vs. Commissioner of Central Excise & Service Tax (CESTAT Allahabad) revolves around a dispute regarding the imposition of Service Tax, interest, and penalties on the appellant. The appellant, a provider of Security Agency Services, was subjected to an audit scrutiny by the Department. During the audit, discrepancies were observed between the value of taxable services reported in ST-3 Returns and the Revenue from Operations in the Balance Sheets for the financial years 2009-10, 2011-12, and 2012-13.
The Department issued a Show Cause Notice invoking the extended period of limitation for the mentioned financial years, proposing demands for Service Tax, interest, and penalties. The appellant contested the notice, arguing that the discrepancies arose due to an oversight by their Chartered Accountant, compounded by the loss of records mentioned in an FIR dated 31.08.2010. They submitted a duly audited Revised Balance Sheet for the FY 2009-10, which reflected lower revenue from operations, thus reducing the alleged service tax evasion. However, the Department rejected this submission.
The appellant challenged the order of the Adjudicating Authority before the Tribunal. Their primary contention was that the Revised Balance Sheet should have been considered, as it provided a valid explanation for the discrepancies. They argued that the Department’s reliance on the Balance Sheet selectively, without considering the Revised Balance Sheet, was unjustified.
Furthermore, the appellant contended that the income shown to the Income Tax authorities could not be used as the basis for determining Service Tax liability without proof that the income was towards a taxable service. They cited various judicial precedents in support of their argument.
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