Shri D. Prabhu, Smt. P. Jayanthi Versus Commissioner of GST & Central Excise Coimbatore
Service Tax
2019 (2) TMI 495 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 7-2-2019
Appeal Nos. ST/41669 & 41670/2018 – Final Order Nos. 40247-40248/2019
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial)
Shri S. Ramachandran, Consultant for the Appellant
Shri L. Nandakumar, AC (AR) for the Respondent
ORDER
The above appeals are filed by the appellants against the demand of service tax and interest demanded by the authorities below alleging that the appellants have collected amount from a purchaser of the flat.
2. Brief facts are that the appellants herein were partners of M/s. Metro City Foundation who were engaged i
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long with interest however he dropped the proposal for imposing penalty. In appeal, Commissioner (Appeals) upheld the same. Hence these appeals.
3. On behalf of the appellants, Shri S. Ramachandran, Consultant submitted that merely because the appellant Shri D. Prabhu has written a letter to the purchaser of the flat Shri Gangadharan, the present demand is raised against the appellants. In fact, the said purchaser had not paid the amount to the appellants and instead had paid the amount to the partnership firm / Shri Thiyagarajan. Since the amount paid is towards the purchased amount of the flat, the appellants having exited the partnership firm on 25.7.2010 are not liable to pay up the demand of service ax. He also produced a copy of the
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rely because the appellat D. Prabhu had written a letter dated 13.7.2010 requesting the purchase to pay up the balance amount, the demand has been raised against the appellants herein. I do not find the logic of the department to issue such a notice against the appellants herein merely basing upon the letter written by the appellant when they were partners of the firm. The records show that the balance amount was paid by the purchaser of the flat by way of demand draft in favour of Shri Thiyagarajan, who continued to be the partner of the firm. The same evidences the payment made by the purchaser to the firm / Thiyagarajan. Therefore, the demand of service tax made against the appellant is without any factual or legal basis. The demand ther
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