2019 (1) TMI 1118

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....r golden quadrilateral road laying work of NH4 under an agreement with Government of India. They have provided services for Haveri-Hubli, Belgaum Bypass, Dharwad-Belgaum Sections under different packages. 2. The Revenue have contended that whereas the appellants were paying service tax, on the third package, inclusive of TDS withholding tax, accommodation charges and remuneration charges, etc. They did not do so on first two packages. The department has issued a show-cause notice dated 23.8.2006 covering a period of July 2001 to January 2006 seeking payment of service tax. Additional Commissioner of Central Excise has confirmed the demand of Rs. 22,69,275/- along with interest and imposed equal penalty under Section 78 and penalty under ....

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....under bona fide belief that service tax is not applicable on the reimbursement of expenses. He also submitted that Hon'ble Supreme Court in the case of UOI vs. Intercontinental Consultants and Technocrats Pvt. Ltd.: 2018-TIOL-76-SC-ST held that service tax is to be paid on the value charged for providing the services and not on the reimbursement expenses collected. He also submitted that withholding tax and TDS was not at all collected the appellant and it was merely added and deducted in the invoice for accounting purposes in the invoice. Therefore, it cannot be considered as part of taxable value. Further, the appellants are eligible for exemption Notification No.2/99 dated 28.2.1999 as the payment to foreign consultant was paid in foreig....

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....tices are different and a new and emergent situation has arisen for invoking the extended period. Therefore, the contentions in the impugned show-cause notice and the orders as far as it relates to accommodation and other charges reimbursed, the department is not correct in extending the period of limitation. Moreover, the issue is no longer res integra as the issue has been decided by the Hon'ble Supreme Court in the case of UOI vs. Intercontinental Consultants and Technocrats Pvt. Ltd. (supra). 6.1 Coming to the issue of withholding tax and TDS, the appellants claim that the same were not collected by the appellant and it was merely added and deducted in the invoice for accounting purposes in the invoice. Therefore, it cannot be consid....