Appeal to Commissioner (Service tax matters)

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abhishek singh (Querist)
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20 April 2022 Dear Experts,
My client was discharging Service Tax from his Service Tax registration in Delhi. Another Service tax number was wrongly allotted to him from Lucknow. Our client has given proper application of surrender to jurisdictional officer in March 2017 for wrongly allotted ST Number. In July 2020, based on 3rd party data (26AS), Letter was issued from Lucknow for inquiry of payment of Service Tax against which reply stating the fact that Service Tax was discharged from registered office in Delhi on 25-08-2020.
Show Cause notice was issued demanding full Service tax, Interest & penalty without considering reply submitted by us. Show cause notice was not delivered to client as address mentioned in wrongly allotted Service tax number is not being used by client. on 12-04-2022, order of Asst Comm (Adj) was handed over to client confirming demand of Service Tax, Interest and penalty wherein it is clearly mentioned that in-spite of sending many letters, no reply was submitted by assessee whereas reply was first letter was submitted. Now my client has no option except filing appeal
this would be my first case of appeal hence request to experts to guide:
1. How to draft Statement of Facts, Ground of appeal and prayer (if draft can be shared for similar case or other case of Service tax, it would be very helpful)
2. Whether Appeal to be filed in ST-4 as per earlier law.
3. What other thinks should be taken care of while perusing the case.

Thanks in advance

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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06 July 2024 Filing an appeal in a Service Tax case involves several crucial steps, especially when facing issues like incorrect allocation of Service Tax numbers and subsequent demands. Below is a structured approach along with draft content for Statement of Facts, Grounds of Appeal, and Prayer, based on your scenario:

### 1. Drafting Statement of Facts, Grounds of Appeal, and Prayer:

#### Statement of Facts:

1. **Background of the Case**:
- Briefly explain the facts leading to the issuance of two Service Tax registration numbers to your client, one in Delhi (correct) and another wrongly allotted in Lucknow.
- Mention the application for surrender of the wrongly allotted Service Tax number submitted in March 2017 to the jurisdictional officer.

2. **Communication and Reply Submission**:
- Describe the events following the 26AS inquiry from Lucknow in July 2020, where a letter was issued despite Service Tax being discharged from the registered office in Delhi.
- Explain that due to the wrong address associated with the wrongly allotted Service Tax number, the show cause notice was not received by the client.

3. **Issuance of Show Cause Notice and Order by Asst Comm (Adj)**:
- Detail the issuance of the show cause notice demanding full Service Tax, interest, and penalty.
- Highlight that despite submitting a reply stating the correct facts, the order confirmed the demand without considering the client's response.

#### Grounds of Appeal:

1. **Violation of Principles of Natural Justice**:
- Assert that the issuance of the order without considering the reply submitted by the client violates the principles of natural justice.
- Mention that due process was not followed as the show cause notice was not properly delivered to the correct address.

2. **Double Taxation and Wrong Allocation**:
- Argue that the demand for Service Tax under the wrongly allotted Service Tax number constitutes double taxation and is not justified.
- Emphasize that the Service Tax was correctly discharged under the registered number in Delhi.

3. **Procedural Irregularities**:
- Highlight procedural irregularities, including the failure to acknowledge the surrender application of the wrongly allotted Service Tax number in 2017.
- State that the client has diligently complied with Service Tax obligations under the correct registration number.

#### Prayer:

- Request the Honorable Appellate Authority to:
- Set aside the order passed by the Asst Comm (Adj) confirming the demand.
- Direct a fresh assessment or corrective action based on the correct facts presented.
- Provide any other relief deemed fit under the circumstances.

### 2. Appeal Form:

- Since this pertains to Service Tax, the appeal form to be filed is typically ST-4 under the earlier Service Tax laws. Ensure all details are filled accurately and attachments such as relevant communications, notices, and the order being appealed against are included.

### 3. Additional Considerations:

- **Legal Representation**: Consider engaging a tax advisor or legal professional experienced in Service Tax matters to assist in preparing and filing the appeal.

- **Document Preparation**: Compile all relevant documents, including copies of correspondence, notices, proof of payment of Service Tax under the correct registration, and any other supporting evidence.

- **Timeline**: Ensure the appeal is filed within the prescribed time limit from the date of receipt of the order to avoid procedural objections.

By following these steps and customizing the draft content to fit your specific case details, you can effectively present your client's appeal before the appellate authority. This approach maximizes the chances of a favorable outcome and ensures compliance with legal procedures and requirements.