Indian Bank Vs Commissioner of GST & Central Excise (CESTAT Chennai)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, decided a batch of appeals arising from a common Order-in-Original dated 22.12.2017 passed by the Commissioner of GST & Central Excise, Chennai. The appeals concerned various show cause notices alleging short payment or non-payment of service tax, short reversal of CENVAT credit, wrongful availment of CENVAT credit, and related issues. While several appeals had already been settled under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, the present appeals related to demands involving service tax on turnover commission, arrangement charges, CENVAT credit, and limitation.
The Tribunal identified the principal issues for consideration as: (i) whether the extended period of limitation had been validly invoked; (ii) alleged short payment of service tax on turnover commission; (iii) service tax liability on arrangement charges or fees; (iv) availment of CENVAT credit on handling charges; and (v) denial of proportionate input tax credit on BSNL invoices.
On limitation, the appellant contended that the demands were time-barred because it had not suppressed any material facts with an intention to evade tax. It submitted that all transactions had been properly recorded in its statutory books, which were regularly examined during departmental audit, and that the disputes primarily involved interpretation of law. According to the appellant, a mere difference of opinion or omission could not justify invocation of the extended period under Section 73(1) of the Finance Act, 1994.
