Case Law Details
S. Thiagarajan Vs Commissioner of G.S.T. and Central Excise (CESTAT Chennai)
The case of S. Thiagarajan vs. Commissioner of G.S.T. and Central Excise at CESTAT Chennai revolves around Service Tax payments for rented properties. This article offers a comprehensive analysis of the case, including its origins, the appellants’ response, the legal proceedings, and CESTAT’s crucial decision.
1. Background and Service Tax Dispute: The dispute’s origins trace back to alleged non-payment of Service Tax for properties leased to M/s. Joy Alukkas Traders (India) Pvt. Ltd. A Show Cause Notice was issued, citing violations of multiple sections of the Finance Act, 1994, and related rules. The authorities sought to recover Service Tax, Education Cess, Higher Education Cess, interest under Section 75, and penalties under Sections 76, 77, and 78.
2. Appellants’ Counterargument: The appellants presented their counterarguments. They emphasized that M/s. Joy Alukkas had deposited a substantial sum equivalent to the Service Tax in a Fixed Deposit account with a lien in favor of the Commissioner of Service Tax, Ernakulam, as per a High Court directive. The appellants contended that the entire demand had been met in this manner and requested consideration of the sum remitted by M/s. Joy Alukkas.
3. Order-in-Original and Appeals: The adjudicating authority confirmed the demands as proposed in the Show Cause Notice in an Order-in-Original issued on 27.11.2020. The authority also ordered the appropriation of a substantial portion of the demanded sum. The appellants appealed to the Commissioner (Appeals), but their appeals were dismissed. Subsequently, they filed appeals before CESTAT Chennai.
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