The Ahmedabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the service tax demand proposed under the wrong head is not sustainable.
The bench of Ramesh Nair (Judicial Member) and Raju, (Technical Member) has observed that the demand was raised under advertising service in the show cause notice whereas the adjudicating authority itself has confirmed the demand under the category of selling of space for advertisement, this demand pertaining to the period prior to 01.07.2012 where the category of service was significantly statutory, therefore, if the demand was proposed under the wrong head, the demand will not sustain under different head.
Background
The issue raised was whether the service tax demand is sustainable when the service was classified under the wrong category in the show cause notice i.e. under Advertising Agency whereas the demand was confirmed in different category i.e. selling of space for advertisement.
The appellant/assessee contended that demand of Rs. 4,12,476/- is pertaining to the extended period and since there is no suppression of fact on the part of the appellant, the demand for the extended period is not sustainable.
The assessee submitted that the demand was raised under the category of advertisement agency in the show cause notice whereas while confirming the demand, it was confirmed under “selling of space or time slots for advertisement other than advertisement broadcast by radio or telephone” for the period 01.04.2012 to 30.06.2012, therefore, the demand is not sustainable.
Conclusion
The CESTAT held that the demand of Rs. 4,12,476 is set aside without going into the issue of limitation as raised by the appellant.
Case Details
Case Title: Sun Outdoors Versus C.C.E & S.T.-Vadodara-I
Case No.: Service Tax Appeal No. 10362 of 2019-DB
Date: 06.11.2024
Counsel For Appellant: Dhruvank Parikh
Counsel For Respondent: Sunita Menon
