In Service Tax Appeal No.96 of 2010 -CESTAT- CESTAT (Kolkata) rules in favor of Assam Company India Limited, finds no intention to evade service tax payment
Members P.K. Choudhary (Judicial) & K. Anpazhakan (Technical) [08-05-2023]

Read Order: Assam Company India Limited v. Commissioner of Service Tax, Kolkata

LE Correspondent

New Delhi, May 10, 2023: Noting that the revenue authorities had failed to establish that Assam Company India Limited (appellant) had intentionally evaded payment of service tax and as soon as the liability was brought to the appellant’s attention, they had voluntarily paid the service tax along with interest, the Kolkata bench of the Customs, Excise & Service Tax Appellate Tribunal has ruled that as per section 73(3) of the Finance Act, 1994, there was no requirement to issue a show cause notice in this case.

Briefly stated facts of the case were that the appellant had failed to pay service tax on ‘Banking and Other Financial Service’ and also did not register or file ST-3 returns for the said service. The appellant did not dispute their service tax liability and during the investigation initiated by DGCEI, they voluntarily discharged the entire service tax along with interest. In a letter dated August 27, 2007, the appellant informed DGCEI that the service tax was not deposited earlier owing to non-comprehension of its chargeability and there was no intention to evade payment of service tax. They also stated that Foreign Currency Convertible Bonds (FCCB) were raised in November 2006 and the payment of service tax was made in August 2007, as soon as the issue was pointed out to them. Since they have made the payment within one year from the date of raising the FCCB, they requested a waiver of the show-cause notice under section 73(3) of the Finance Act, 1994, but their request was not considered, and a notice was issued, confirming the demand in the impugned order.

The two-member bench of P.K. Choudhary (Judicial) and K. Anpazhakan (Technical) observed that the appellants had raised FCCBs from abroad in November 2006 and paid the charges for the same. When the service tax liability on these fee payments was pointed out to them, they have accepted their liability and made payment of service tax along with interest in August 2007. Therefore, it was determined that there was no intention on the part of the appellants to evade payment of service tax.