Outotec India Private Limited Vs Principal Commissioner of Service Tax-I (CESTAT Kolkata)
CESTAT Kolkata held that no demand of service tax can be made simply based on the difference between the Balance Sheet and the ST-3 returns without providing any explanation about the nature of service on which service tax is payable. Thus, order is set aside to that extent.
Facts- The present appeal has been filed against the Order-in-Original dated 31.03.2016 wherein the total demand of Service Tax amounting to Rs.8,18,77,300/-, along with recovery of CENVAT Credit of Rs.1,67,768/-, has been ordered, along with interest. In the said order, the ld. adjudicating authority has also imposed penalties u/s. 77 and 78 of the Finance Act, 1994 read with Rule 15 of the CENVAT Credit Rules, 2004.
The appellant has pointed out that out of the total demand of Rs.8,18,77,300/-, Rs.5,94,03,322/-[Rs.4,28,99,373/- + Rs.1,65,03,949/-] pertains to the demand of Service Tax raised u/s. 73(2) of the Finance Act, 1994 and Rs.2,24,73,978/-pertains to the demand of Service Tax raised under reverse charge; it is stated that they have already reversed the CENVAT Credit of Rs.1,67,768/- from their CENVAT Credit Account, prior to utilization of the same and before passing of the impugned order and hence, denial of the same is not being contested in this appeal.
