Salini NDT Services Pvt Ltd Vs Commissioner of CGST And Central Excise (CESTAT Mumbai)
In a service tax dispute involving alleged short payment based on Income Tax Return data for FY 2016-17, the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) remanded the matter back to the Commissioner (Appeals) after finding that the appellant had failed to properly file the memorandum of appeal in the prescribed Form ST-4.
The dispute originated after the department received Income Tax Return data from the Income Tax Department and sought financial records, including Form 26AS, from the appellant for the period 2016-17 to 2017-18. As the appellant did not furnish the required documents, the department proceeded with a best judgment assessment and issued a show cause notice dated 11.10.2021 under Section 73(1) of the Finance Act, 1994. The notice proposed recovery of alleged short-paid service tax amounting to Rs. 25,42,189 along with interest and penalties, invoking the extended period of limitation.
During adjudication, the appellant submitted a reconciliation statement comparing figures in the Income Tax Return and Service Tax Return for FY 2016-17 and also produced challans evidencing cash payment of service tax amounting to Rs. 6,85,494. The appellant further claimed exemption for services rendered to Special Economic Zone (SEZ) units under Notification No. 12/2013-ST dated 01.07.2013. However, according to the order, no documentary evidence supporting the exemption claim was produced before the Adjudicating Authority.
