TaxTMI 
TaxTMI 
2013 (11) TMI 1305
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.... No.15/2012 ST dt.6.2.2012 Rs.12,17,264/- Rs.5000/- or Rs.200/ per day u/s 77(1) Rs.5000/- u/s 77(2) Rs.2000/- us/s 70 Rs.12,17,264/- u/s 78 P Mallikarjun Reddy No.80/2012 (T) ST dt. 5.11.2012 No.13/2012 ST dt.6.2.2012 Rs.11,51,597/- Rs.5000/- or Rs.200/ per day u/s 77(1) Rs.5000/- u/s 77(2) Rs.2000/- us/s 70 Rs.11,51,597/- u/s 78 All the aforementioned appeals were decided on 5.11.2012 by Commissioner of Customs and Central Excise and Service Tax (Appeals), Guntur. 2. The facts common to all these appeals are that they had entered into an agreement with M/s. Hindustan Petroleum Corporation Ltd. (HPCL for short) for running and maintenance of retail gasoline outlets of HPCL. As per the contracts which are pari materia it provides for that HPCL is the owner / leased owner of the retail outlet site and the appellant in the capacity of contractor have agreed to run the same for a period of one year which is renewable at the pleasure of HPCL and it is also terminable at the discretion of HPCL at one months notice. Although the agreement says that the corporation intends to engaged ....
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.... and stamped 5 litre measure and other measures for selling loose oils should always be maintained in good condition. 2.1.2. The labour contractor will dispense for sale products of the Corporation only and no other products will be allowed to be received/delivered/sold through the retail outlet except with the prior written permission of the corporation. 2.1.3. The labour contractor shall not carry out any business at/from the premises of the retail outlet other than that of the sale of the petroleum products supplied by the corporation save and except supply/sale of lubricating oils supplied/marketed by the corporation and allied products/services like distilled water, polish cloth, etc., to the customers as may be allowed in writing by the corporation. 2.1.4. The corporation will supply/maintain an initial inventory of KL MS and 24 KL HSD. The labour contractor will sell MS and HSD from the initial stocks of inventory and submit pay order/Demand Draft equivalent to the value of the product sold at the retail selling price for replenishment of stocks by the corporation. Any shortage of cash will be the responsibility of the labour contractor and should be made good to th....
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....ority with regard to the storage and sale of petroleum products. 5. The expenses in connection with the operation of the Retail Outlet like electricity, water, etc. will be borne by the Corporation. With regard to telephone, only rentals and local calls and trunk calls to corporation's offices and supply points will be borne by the corporation. Expenses towards other calls for personal/prive use will be borne by the labour contractor. 6. The labour contractor shall have the right only to enter the premises for the purpose of performing the jobs stated in Clause 2 at the said premises and shall have no right, title or interest in the said premises or outfit and it is agreed by the labour contractor and declared in particular that the labour contractor shall not be deemed to be in exclusive possession of the said premises. The labour contractor will have no claim on dealership for the Retail Outlet on the sole basis of this Agreement. 7. The agreement will be for a period of one year with effect from 12.7.2004. The Corporation, at its option, may renew the agreement for a further period of one year. However, the agreement may be terminated at the option of the Corporation by....
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.... Period Amount received from HPCL Shri Sajjid Ahamad September 2006 to March 2011 Rs.1,00,02,274/- A Janardhan Goud April 2006 to March 2010 Rs.1,03,74,547/- P Mallikarjun Reddy September 2006 to March 2011 Rs.1,00,62,307/- It was further found that the services rendered by the appellants to HPCL is in the nature of Business Auxiliary Service and they have failed to get themselves registered and comply with the various provisions and at the same time have not paid the due taxes on the service provided to HPCL and accordingly the appellants were required to show-cause as to why amounts towards service tax payable but not paid by them on the taxable value received for the services rendered for the aforementioned period under the category of BAS should not be demanded under Section 73(1) of the Finance Act, read with proviso thereto and further why not interest be demanded along with penalties under Section 76, 77 and 78 of the Finance Act. In the OIO of P.M. Reddy in para 2.0 it is stated that the appellant did not file any reply however the Manger Mr. S.A. Naseer appeared at the time of personal he....
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....it was not sure why the service receiver did not pay service tax to us. We are not aware of the service tax liability and its intricacies. The classification of service rendered by us and the service tax liability on the same is not free from doubt even on this day. Valuation of taxable services is also not free from ambiguity. (e) In the case of S.N. Upar Co. vs. Commissioner of Central Excise, Belgaum reported in 2008 (11) S.T.R. 34 (Tri.-Bang.) it was held that for coverage under particular category and liability to service tax, burden is on revenue department to show with contract and other documents that activities are covered under taxable service. (f) The contract entered by us with HPCL is for rendering the service of maintenance, quality checking, housekeeping, sale of products of HPCL, handling, manpower recruitment, manpower supply, security service, etc. The payment is made manpower wise. The contract labour utilized by us in the premises of HPCL, works under our direction and performs all the above mentioned work. The deliverables in this case are all the above works. As such, all the works under a broad category cannot be classified under Business Auxiliary serv....