Tribunal Adjusts Demands; Appellant To Pay Rs. 60 Lakhs & Rs. 1.12 Lakhs Post Verification, Rs. 22.9 Lakhs Under Review.

The Tribunal set aside demands totaling Rs. 80,55,442/- against the Appellant, contingent upon a payment of Rs. 60.00 Lakhs, subject to verification by the Adjudicating authority. Additional demands of Rs. 70,01,573/- and Rs. 10,53,869/- were quashed, with a directive to pay Rs. 1.12 Lakhs if verified. The Tribunal remanded the issue of Rs. 22,92,514/- for short payment to the Adjudicating authority for further verification. The Appeal was partly allowed and partly remanded, with specific instructions for verification and compliance.

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Issues:
1. Appellant's liability for Service Tax under 'Construction of Commercial Complex Service' vs. 'Works Contract Service'.
2. Alleged failure to file option letter for switching services.
3. Demand for short payment of Service Tax during a specific period.

Analysis:
1. The Appellant, a provider of 'Construction of Commercial Complex Service', faced a Show Cause Notice alleging non-filing of an option letter to switch to 'Works Contract Service'. The demands raised were challenged before the Tribunal. The Appellant contended that they started paying Service Tax under the composition scheme for ongoing projects falling under 'Works Contract Service' post the introduction of the new service category. Reference was made to a precedent where filing ST-3 Returns indicating payment under 'Works Contract Service' was deemed sufficient intimation to the Department. The Tribunal, following the precedent, set aside demands totaling Rs. 80,55,442/-, subject to the Appellant paying Rs. 60.00 Lakhs, as self-calculated, after verification by the Adjudicating authority.

2. The Tribunal emphasized that the issue of non-filing of an option letter had been settled in the cited case law, stating that paying tax under the composition scheme, as reflected in the returns, was indicative of opting for 'Works Contract Service'. The demands of Rs. 70,01,573/- and Rs. 10,53,869/- were quashed based on this reasoning. The Appellant was directed to pay the balance amount of Rs. 1.12 Lakhs, if verified by the Adjudicating authority, in addition to interest. The Tribunal instructed the Adjudicating authority to verify the Appellant's claims regarding payments made during litigation.

3. Regarding the demand of Rs. 22,92,514/- for short payment during a specific period, the Appellant submitted a C.A.'s Certificate citing a computation error leading to the alleged shortfall. The Tribunal remanded this issue to the Adjudicating authority for verification along with other documentary evidence provided by the Appellant. The Appeal was partly allowed and partly remanded, with detailed instructions for verification and payment compliance.

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