Parth Enterprises Vs Commissioner of CGST & C. Ex. (CESTAT Mumbai)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, allowed the appeal filed against the Order-in-Appeal dated 06.10.2023 concerning service tax demand raised for financial years 2015-16, 2016-17, and 2017-18 (up to June 2017). The appellant, registered for providing taxable services including Legal Consultancy Services, Maintenance or Repair Service, and Construction of Residential Complex Services, was issued a show cause notice dated 21.12.2020 after the department compared data received from the Directorate General of Systems & Data Management with Income Tax returns. The department alleged non-payment of service tax on taxable services valued at Rs.11,31,000 for FY 2015-16, Rs.13,57,200 for FY 2016-17, and Rs.4,07,160 for FY 2017-18. A service tax demand of Rs.4,28,649 with interest and penalties was proposed.
The adjudicating authority partly dropped the demand and determined tax liability at Rs.1,63,995 after considering certain amounts received as salary income. However, the benefit of exemption under Notification No. 33/2012 dated 20/06/2012. was denied. The Commissioner (Appeals) upheld this order.
Before the Tribunal, the appellant stated that registration was obtained to secure a bank loan for providing taxable services. It was also submitted that due to an accident during 2016-17, the appellant remained bedridden and could not provide legal consultancy services to co-operative housing societies. The appellant contended that he fulfilled all conditions for availing the general exemption under Notification No. 33/2012 dated 20/06/2012. under which taxable services up to Rs.10 lakh in a financial year are exempt from service tax, subject to specified conditions.
