2013 (7) TMI 1037 - AT - Service Tax

Applicant directed to pay 25,00,000 for tax liabilities. Waiver subject to deposit. Compliance deadline: 20th September 2013.

R.S. Constructions Versus Commissioner of Service Tax, Chennai

The applicant was directed to deposit &8377; 25,00,000 within eight weeks for tax liabilities related to belated service tax payments, construction ... - Issues involved: Demand of tax along with interest and penalty for the period 2004-05 to 2007-08 related to belated payment of service tax, service tax not paid on various works, and failure to provide evidence for tax payments.Summary:Belated payment of service tax: The applicant had a demand of tax of &8377; 32,14,641/- for belated payment of service tax for the period from 07/08 to 12/08. It was noted that this amount had already been deposited.Construction of roads for NPCIL: A demand of tax of &8377; 38,09,076/- was related to the construction of roads, primarily for Nuclear Power Corporation of India Ltd. The applicant claimed exemption under Notification No. 17/2005-S.T., which extended benefits for the construction of public roads.Tax liability as a sub-contractor: For a demand of tax of &8377; 26,17,130/-, the applicant argued that the principal contractor had already paid the entire service tax. However, the adjudicating authority held the tax liability to be on the applicant. The applicant also disputed demands related to Cargo Handling Service and GTA Service, but failed to provide supporting evidence.Failure to make out a prima facie case: After considering submissions from both sides, it was determined that the applicant failed to establish a prima facie case for the waiver of the entire amount of tax, penalty, and interest. The applicant was directed to deposit &8377; 25,00,000/- within eight weeks, with the balance adjudged dues being waived upon this deposit. Recovery of the remaining amount was stayed pending the appeal process. Compliance was to be reported by 20th September 2013.