Principal Commissioner of Central Tax Vs Adarsh Developers (Karnataka High Court)
Karnataka High Court held that department was aware about the facts while issuing first show cause notice. Hence, no suppression can be held against the appellant and invoked while raising demand for subsequent period. Accordingly, allegation of suppression of facts not sustained.
Facts-
The respondent – Assessee was issued with a show cause notice dated 19.10.2012 by the Office Of Commissioner Of Service Tax requiring the Assessee to furnish balance sheets for the period from 2007-08 to 2011-12 and various other documents for the said period. The Assessee responded to the said show cause notice and furnished certain documents. Subsequently, vide Order-In-Original dated 31.03.2016 which was issued on 27.04.2016 it was held that the Assessee had suppressed the facts with intent to evade payment of service tax within the meaning as provided under the proviso to Section 73(1) of the Finance Act, 1973 and further it was held that the assessee is liable to pay applicable interest on the service tax payable for the said periods.
Being aggrieved, the assessee preferred an appeal before the Appellate Tribunal. Tribunal partly allowed the appeal. Being aggrieved, revenue has preferred the present appeal.
