2017 (4) TMI 227

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....aryana on 13.06.2006 for construction of Flats owned by Haryana Housing Board. The appellant is contended that the flats constructed by the appellants as works contract and is liable to pay service tax @ 2% amount received from Haryana Housing Board. It is a contention of the appellant is that for period prior to 01.06.2006-2007, the appellant is not liable to pay service tax in the light of decision of the Hon'ble Supreme Court in the case of CCE, Kerala Vs. M/s Larsen And Toubro Ltd. 2015-TIOL-187-SC-ST. It is his contention that the substantial amount relates to period prior 01.06.2007. It is his further contention that the appellant liable to pay service Tax on the remaining amount @ 2% in terms of Notification No.32/2007-S.T. dt. 22.05....

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....ion of facts) is not invokable. Resultantly, the penalty is not imposable. 4. It is also submitted that the appellant on account of aforesaid reasons did not pay service tax. It is admitted position that Haryana Housing Board did not pay service tax. It is further submitted that in FAO No. 3695 of 2015 vide order dt. 01.12.2015, the Hon'ble High Court of Punjab and Haryana held that Haryana Housing Board is not liable to pay service tax, so, in all circumstances, the burden shall be borne by the appellant. The ld. Counsel for the appellants submits that in view of the above circumstances, the appellant is entitle for the benefit of Section 80 of the Finance Act, 1994 for levying the penalty under Section 78 of the Act as it is case of bo....

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....nnot be levied on the amount received by the appellant prior to 01.06.2007. 9. Further we find that the appellant had been communicated by Haryana Housing Board at the time of award of the work, the Haryana Housing Board a Government Undertaking was of the view that they are not liable to pay service tax and the amount towards service tax liability was reduced from the biding price on the plea of the Haryana Housing Board while awarding work to the appellant, the appellant with bona fide intention did not charge service tax from the Haryana Housing Board and consequentially did not pay service tax. On merit, we are of the view that for the period post 01.06.2007, the appellant is liable to pay service tax. We also take note of the fact t....