Demand Under Service Tax On RCM, Has To Be Worked Out And Calculated Transaction-Wise And Invoice-Wise: CESTAT
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal has held that demand under service tax on reverse charge mechanisms has to be worked out and calculated transaction-wise and invoice-wise.The bench of Anil Choudhary has observed that in the absence of any transaction-wise and invoice-wise calculation, the show-cause notices are vague and. The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal has held that demand under service tax on reverse charge mechanisms has to be worked out and calculated transaction-wise and invoice-wise. A show cause notice was issued invoking the extended period of limitation and alleging that the appellant has not paid service tax under the reverse charge mechanism, as there is an apparent difference between the balance sheet figure of expenses and the amounts shown in the ST-3 Returns. A second show cause notice was also issued on the very same allegations for the period April 16 to June 17, demanding service tax on legal professional and consultancy services and on security services, including cess, as short-paid under RCM, along with interest and penalties proposed under Section 76.
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