Varun Transport Vs Commissioner of CGST & Central Excise (CESTAT Mumbai)
In Varun Transport vs Commissioner of CGST and Central Excise CESTAT Mumbai, the appellant challenged the confirmation of a service tax demand arising from discrepancies between income reported in Income Tax Returns/Form 26AS and Service Tax Returns for the financial year 2014–15. The Department initiated proceedings based on a difference of ₹60.21 lakh and confirmed a service tax demand of ₹7.44 lakh along with interest and penalties. The Commissioner (Appeals) upheld the demand on the ground that the appellant failed to provide sufficient documentary evidence to establish that the tax liability had been discharged by the service recipient under the Reverse Charge Mechanism (RCM).
The appellant contended that the difference pertained to Goods Transport Agency (GTA) services provided to a recipient, which had discharged the service tax liability under RCM. It was argued that a certificate from the recipient confirming such payment had been submitted but was disregarded due to lack of detailed break-up. During the hearing before the Tribunal, the appellant produced a fresh certificate from the recipient confirming payment of service tax amounting to ₹60.21 lakh under RCM for the relevant period.
The Tribunal observed that the new certificate was produced for the first time at the appellate stage and required verification. Accordingly, it held that the matter should be remanded to the original adjudicating authority to examine the certificate and supporting documents to ascertain whether the service tax liability had already been discharged by the recipient. The impugned order was set aside, and the case was remanded for de novo adjudication with a direction to grant an opportunity of personal hearing to the appellant.
