2026-VIL-1721-CESTAT-DEL-ST
  1. Home
  2. 2026-VIL-1721-CESTAT-DEL-ST

SERVICE TAX CESTAT Cases

Service Tax - Adjustment of demand of service tax and recovery of CENVAT credit against balance lying in CENVAT credit account - Appellant, a provider of construction of residential complex service, was demanded service tax for short payment under the Point of Taxation Rules, 2011, for wrongly availed CENVAT credit and for non-reflection of value of services in the ST-3 return for April 2017 to June 2017 - Appellant contended that it had sufficient balance in its CENVAT credit account on 30.06.2017 against which the entire demand could be adjusted - Whether the demand of service tax and recovery of CENVAT credit could be adjusted against the credit balance available in the CENVAT credit account - HELD - Admittedly the Appellant had not filed the service tax return for the period April 2017 to June 2017 and had not paid the service tax although it had sufficient CENVAT credit balance in its CENVAT account on 30.06.2017. This does not mean that the Appellant is not required to file the service tax return. Since the Appellant had sufficient balance to meet the demands in both the show cause notices, the demands are to be adjusted against the CENVAT credit balance in the CENVAT credit account, as held by this Tribunal in the case of Uttaranchal Cable Networks. Consequently no demand of service tax is sustainable and no interest is payable - Adjustment is allowed and the appeals are disposed of - Imposition of penalty under Section 78 of the Finance Act, 1994 where demand is adjusted against CENVAT credit balance - Appellant had not filed the ST-3 returns for the period April 2017 to June 2017 and had not declared its taxable service although the demand of service tax stood adjusted against the balance in the CENVAT credit account - Whether penalty is imposable on the Appellant when no demand of service tax survives - HELD - As the Appellant had not filed the ST-3 returns in time and had not declared its taxable service, penalty under Section 78 is imposable. The penalty is reduced to 25% of the service tax payable by the Appellant - Penalty under Section 78 is imposed at the reduced rate and the appeals are disposed of accordingly.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?