State Bank of India v. CST - Taxpublishers.in

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The Tax Publishers 2019 TaxPub(ST) 0813 (CESTAT-Mum) State Bank of India v. CST FINANCE ACT, 1994 --Recovery--Extended period of LimitationLevy of penalty--Short payment of service tax --The argument of assessee that they had paid the service tax prior to issuance of Show Cause Notice did not hold good in view of the decision of Bombay High Court in case of Shri Ram Aluminium (P) Ltd. 2009 (242) E.L.T. 202 (Bom.) : 2009 TaxPub(EX) 2473, therefore, appeal of assessee was dismissed.--Assessees were nationalized bank having branches across the country. During course of Audit of their branches, it was observed that branches were wrongly computing the service tax payable and thereby short paying the service tax. Similar discrepancies were observed in other branches during audit. On the basis of audit undertaken Show Cause Notices were issued to each branch, demanding the service tax short paid by invoking the proviso to section 73 (1) along with demand interest and penalty under sections 76, 77 and 78 were also proposed. *Held:* In case of non/short payment of duty, section 73(1) automatically comes into picture and demand is made in terms of that section, to recover the duty so short paid. The duty was paid after the relevant date the same gets adjusted by application of the section. The argument of assessees to the effect that they had paid the service tax prior to issuance of Show Cause Notice did not hold good in view of the decision of Bombay High Court in case of Shri Ram Aluminium (P) Ltd. 2009 (242) E.L.T. 202 (Bom.) : 2009 TaxPub(EX) 2473, therefore, appeal of assessee was dismissed. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2019 TaxPub(ST) 0813 (CESTAT-Mum)

State Bank of India v. CST

FINANCE ACT, 1994

--Recovery--Extended period of LimitationLevy of penalty--Short payment of service tax --The argument of assessee that they had paid the service tax prior to issuance of Show Cause Notice did not hold good in view of the decision of Bombay High Court in case of Shri Ram Aluminium (P) Ltd. 2009 (242) E.L.T. 202 (Bom.) : 2009 TaxPub(EX) 2473, therefore, appeal of assessee was dismissed.--Assessees were nationalized bank having branches across the country. During course of Audit of their branches, it was observed that branches were wrongly computing the service tax payable and thereby short paying the service tax. Similar discrepancies were observed in other branches during audit. On the basis of audit undertaken Show Cause Notices were issued to each branch, demanding the service tax short paid by invoking the proviso to section 73 (1) along with demand interest and penalty under sections 76, 77 and 78 were also proposed. Held: In case of non/short payment of duty, section 73(1) automatically comes into picture and demand is made in terms of that section, to recover the duty so short paid. The duty was paid after the relevant date the same gets adjusted by application of the section. The argument of assessees to the effect that they had paid the service tax prior to issuance of Show Cause Notice did not hold good in view of the decision of Bombay High Court in case of Shri Ram Aluminium (P) Ltd. 2009 (242) E.L.T. 202 (Bom.) : 2009 TaxPub(EX) 2473, therefore, appeal of assessee was dismissed.