S.M. Niryat Private Limited Vs Commissioner of Service Tax-II (CESTAT Kolkata)
CESTAT Quashes Service Tax Demand Due to Incorrect Computation of Transportation Charges; Service Tax Demand Set Aside Because Revenue Ignored ST-3 Returns and Taxes Already Paid; CESTAT Grants Export Transport Exemption Despite Delayed Filing of EXP Forms; Penalty Under Section 78 Set Aside Because Revenue Failed to Prove Suppression or Fraud.
In , the appeal was filed against an Order-in-Original dated 27.11.2015 passed by the Commissioner of Service Tax-II, Kolkata, which had confirmed service tax demand, interest, and penalties against the appellant in relation to transportation services received under the reverse charge mechanism during the period from 01.10.2007 to 31.12.2012.
The dispute arose after verification by the Survey, Intelligence & Verification (SIV) Unit, which alleged that the declaration filed by the appellant under the Voluntary Compliance Encouragement Scheme, 2013 (VCES) was substantially false. According to the Department, the appellant had declared tax dues of only Rs.6,54,845/- whereas actual liability amounted to Rs.6,34,60,359/-. A show cause notice was issued demanding service tax, interest, and penalties. The adjudicating authority partially confirmed the demand to the extent of Rs.4,43,45,453/- along with equal penalty under Section 78, interest, and separate penalty under Section 77(2).
