Service Tax - Fencing on Indo Bangladesh Border - No erection, Commissioning - No Service Tax: CESTAT

Ref: Breaking News, KOLKATA, dated 12th March, 2015 regarding disposal of Service Tax dispute.
In this case, 51 appeals; challenging the confirmation of the Service Tax demands in respect of Fencing on Indo Bangladesh Border; have been allowed by the CESTAT with a single Order. The decision has gone against the Department but the happiest persons with this decision would be those who are posted in the field or sitting in Tax Recovery Branches of the Department. The manner of Departmental adjudication is so biased that if demands have been raised through Show Cause Notice then the same ought to be confirmed. This faulty methodology has its own virtues for the Departmental Officers. First, the booking of Offence cases becomes part of the performance at this stage. The second stage of performance comes for the adjudicating authority and Adjudication Branch of the Department. Third stage of performance comes for the Departmental Representative standing before Appellate Forums like CESTAT. One more stage of performance is for Review and Legal Branch entrusted with scrutiny or examination of the issue relating to acceptance or further appeal in the matter. The persons supporting the theory of “Ease of doing business” will not appreciate the virtues contained in the story of these performers. However, it should be kept in mind that all these performers are making sincere efforts for the sake of Government revenue. Our countrymen should not be worried because resources spent by the Department as well as tax-payers in this whole process contribute in nation’s progress by way of creation of jobs in manufacturing as well as services sector!

pankaj jaroli 14/03/2015