𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗳𝗼𝗿 𝗕𝘂𝗶𝗹𝗱𝗲𝗿𝘀 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "No evidence was presented by the Revenue to prove that the amount collected was exclusive of service tax. The liability was correctly paid on a cum-tax basis, and the show-cause notice (SCN) was unwarranted as the tax and interest were promptly deposited."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s Sumeru Builders 𝗜𝘀𝘀𝘂𝗲: Whether the appellant is entitled to the benefit of Section 73(3) of the Finance Act, 1994. 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: Initially exempt from service tax as builders under CBEC Circular (2009), liability arose post-2010 Finance Act amendments. Tax with interest was voluntarily discharged but cum-tax basis and delayed compliance led to SCN.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that: No Evidence from Revenue: Revenue failed to prove the amount collected was exclusive of service tax. Cum-Tax Basis Valid: Payment on a cum-tax basis as per Section 67(2) was appropriate. Prompt Payment: As tax with interest was paid promptly, Section 73(3) benefit should not have been denied. The appeal was allowed, and the penalty imposed was set aside.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s Sumeru Builders vs. C.C.E. & S.T.-Rajkot 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 10 January 2023 📜 This ruling affirms the validity of cum-tax payment and reinforces the benefit of Section 73(3) for voluntary compliance.