February 2012
(2011) 24 STR 618 (Tri.-Mumbai.) — Amalner Cooperative Bank Ltd. v. Commissioner of Central Excise, Nashik.
By Puloma Dalal, Jayesh Gogri
Chartered Accountants
Reading Time 1 mins
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Appellant provided services taxable under banking and financial services — Amount of taxable service provided below Rs.4 lakh — Registration certificate surrendered taking benefit of the Notification 6/2005 — Department had duty to verify whether assessee rightly surrendered their registration certificate within a period of one year — Failure to take any action within prescribed time limit — Appellant cannot be questioned subsequently.
Facts:
The appellant provided banking and other financial services and were holding service tax registration certificate under the said category. However, taking into account the benefit under Notification 6/2005, the appellant surrendered the registration certificate to the Department, as their taxable service provided was below Rs.4 lakh. The Department alleged that the assessee wrongly availed the benefit under the said Notification and was liable to pay service tax along with penalty as there was willful suppression of facts.
Held:
Time limit prescribed under law for any action to be taken by the Department is one year from the date of surrendering the registration certificate — Department cannot question the same subsequently. The matter sent back to adjudicating authority to re-quantify the demand pertaining to the normal period. Appeal disposed of by reducing the penalty from Rs.5,000 to Rs.1,000.
