Videsh Sanchar Nigam Ltd. Vs. Cst - Court Judgment

Excerpt:
1. the appellant challenges the order of the commissioner made on 18.12.2006, confirming the demand of service tax amounting to rs. 22,13,598/-under section 73 read with sections 66 and 68 of the finance act 1944, ordering interest on that amount under section 75 of the act and imposing penalty of rs. 100/- per day subject to the maximum equal to the amount of service tax, under section 76, besides imposing penalty of rs. 1,000/- under section 77 of the act.2. during the course of the arguments, it appeared that though the appellant was not able to produce documentary evidence earlier for claiming adjustment, it was demonstrated before us from the documents that the service tax was computed even in respect of the refund of security deposit and other refunds made to the customers on.....

Judgment:
1. The appellant challenges the order of the Commissioner made on 18.12.2006, confirming the demand of service tax amounting to Rs. 22,13,598/-under Section 73 read with Sections 66 and 68 of the Finance Act 1944, ordering interest on that amount under Section 75 of the Act and imposing penalty of Rs. 100/- per day subject to the maximum equal to the amount of service tax, under Section 76, besides imposing penalty of Rs. 1,000/- under Section 77 of the Act.

2. During the course of the arguments, it appeared that though the appellant was not able to produce documentary evidence earlier for claiming adjustment, it was demonstrated before us from the documents that the service tax was computed even in respect of the refund of security deposit and other refunds made to the customers on account of circuit termination, the amounts of dishonored cheques, the amount of service tax which was wrongly paid twice, excess amount paid by the customers on which service tax was paid, amounts recovered against sale of goods etc. The Commissioner has decided the matter against the appellant mainly on the ground that though contentions were raised, the appellant did not produce the relevant record. It was found that the summary sheet of the appellant did not meet with the mandatory requirement of correct return, and there were no details like invoice nos., names etc. It does appears that the appellant has documentary evidence of contemporaneous nature to plead adjustments and because of the default of its officers, relevant evidence could not be adduced before the Commissioner during the hearing. The learned Counsel submitted that the matter may be remanded to the Commissioner to enable the appellant to produce the requisite documents and other evidence in support of its adjustment pleas. On instructions, he submitted that the appellant was prepared to deposit sum amount with the Commissioner, which eventually may be adjusted depending upon the outcome of the proceedings.

3. The authorized representative (DR) for the department also submitted that the relevant record which was shown in the Court can be considered by the Commissioner only after remand and that the appellant may be put to terms for effecting the remand by requiring deposit of a substantial amount.

4. Having hearing both the sides finally and taking note of the fact that the relevant documentary evidence was not adduced, due to the lapse on the part of officers/staff of the company, before the Commissioner, and accepting the request made on behalf of the applicant to make a deposit of suitable amount, it is ordered that on the appellants' depositing Rs. 2 lacs before the Commissioner within two weeks from today, the Commissioner will hear the matter afresh after allowing the parties to produce the relevant record and dispose of the same in accordance with law, preferably within three months from the date of the receipt of this order. The amount of Rs. 2 lacs, which will be deposited by the appellant, may be adjusted depending upon the outcome of the proceedings before the Commissioner. The impugned order is accordingly set-aside and the matter is remanded to the Commissioner for a fresh decision. The appeal and the application are disposed of accordingly.