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TaxTMI 
TaxTMI 
TaxTMI 
2023 (5) TMI 607
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....ent agency for the Government departments under MP Store Purchase Rules. The Appellant also undertakes turnkey civil construction works for the State Government as well as for the Central Government. 2. A show cause notice was issued to the Appellant wherein demand of Service Tax of Rs.82,91,742/- was proposed under the category of Business Auxiliary Services ("BAS") on the premise that the Appellant had received service charges of Rs.6,18,47,020/- and Rs.7,77,03,620/- during 2003-04 and 2004- 05 respectively which were in respect of BAS rendered by it for promoting the business of units, who were receiving the services. Thus, such service charges are susceptible to Service Tax of Rs.1,28,73,531/- under the category of BAS from 1.7.2003. ....
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....ant regarding such income being covered under show cause notices dated 28.9.2007 and 9.7.2008 are not tenable as the said show cause notices dealt with income from supervision charges, which were separately recorded in the balance sheet, and not income from service charges. 3. Consequently, the demand of Service Tax of Rs.58,16,513/- under the category of BAS for period 2004-05 was confirmed by the Commissioner. Further, the amount of Service Tax already paid by the appellant amounting to Rs.45,81,789/- was appropriated. The balance amount of Rs.12,34,724/- was confirmed. 4. Being aggrieved by the order, the appellant has filed the present appeal to assail the impugned order. 5. The learned counsel appearing for the appellant submitted t....
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....ontained details of the transactions and justify as to how they are liable to tax under the heading 'BAS'. 8. Learned counsel further submitted that Service Tax can only be levied on a concrete service transaction and cannot be imposed merely on basis of assumptions. Hence, it must be established that income is on account of taxable services, the classification of which should have been properly alleged in the show cause notice. In absence of the Department discharging its burden of proof, towards framing of proper allegations, the demand cannot be sustained, and the impugned order is liable to be set aside. The learned counsel further stated that the nature of activity undertaken by the appellant was a composite works contract, and not 'B....
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.... several judgements based on which this Tribunal can set aside the impugned order based on the instant show cause notice, we undertake to examine the issue on merit as well. We note that the impugned order has confirmed the demand of service tax on the income of Rs.64,21,843/- by observing that the contention of the appellant that it is covered under other litigation is factually incorrect. However, the impugned order has no finding as to how these charges are actually covered under the scope of BAS. A perusal of the nature of activities to which the said income pertains shows that they are service charges for the year 2004-05, received on account of Head Office, Bhopal; Emporium, Bhopal; Emporium, Jabalpur, Emporium, Rewa;Civil Department,....
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....cifications. The appellant completes the construction of the building in all respects and then hands it over to the NVS. Such activities carried out by the appellant are in the nature of composite construction contracts involving supply of goods as well as provision of services and would appropriately be covered under works contract service. These activities have nothing to do with the promotion or marketing of goods for any client and is not covered under the scope of BAS. In this regard we rely on the decision of the Supreme Court in Commissioner vs Larsen & Toubro Ltd. [2015-TIOL-187-SC-ST], where in it was held that composite contracts involving supply of goods coupled with provision of labour/services are covered under the scope of wor....