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2024 (3) TMI 919
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....Service Tax, Patna, wherein the Ld. Commissioner has confirmed the demand of Service Tax Rs. 90,63,761/- along with interest and imposed equal amount of tax as penalty. He also denied CENVAT Credit Rs.4,92,438/- along with interest and imposed equal amount of credit denied as penalty. Aggrieved against the confirmation of these demands, the appellant has filed this appeal. 2. The facts of the case are that the Appellant was appointed as an Executing Agency by Bihar Urban Development Agency vide MOU dated 08.01.2008, whereby they were required to execute the work of construction of Residential Complexes in the state of Bihar. For this purpose, they have received 8.5% of the project cost as consultancy agency fees and paid service tax unde....
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....llant submits that they have not rendered the service of 'Construction of complex service'. The amount received by them towards construction of residential complexes have been disbursed to the contractors, who actually carried out the construction work. As an Execution Agency, they were eligible only for 8.5% of the cost by way of consultation charges. Accordingly, they submitted that they were not liable to pay service tax under 'Construction of Complex service' on the total amount of Rs. 7.04 crores received for the entire work. As they have already paid service tax on 8.5% of the project cost received under 'Consulting Engineer Service', they prayed for setting aside the demand confirmed in the impugned order on this coun....
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....n the advance of Rs.7.04 crores received from the Bihar State Government under the category of 'Consulting Engineer Service'. Thus, it is observed that the appellant has received 8.5% of the project cost as consultancy agency fees and paid service tax under the category of 'Consulting Engineer Service'. However, the Department was of the view that the Appellant was liable to pay Service Tax on the full amount received by them, under the category of 'Construction of Complex service' as defined under Section 65(105)(zzzh) of the Finance Act, 1994. 7.2. We have perused the MOU dated 08.01.2008 signed by the Appellant with Bihar State Urban Development Agency and the role of the Appellant as 'Executing agency' in the MOU. The scope o....
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....ngly, we hold that the demand of service tax along with interest and penalty confirmed in the impugned order under the category of 'Construction of Complex service' is not sustainable and hence we set aside the same. 7.4 We observe that the impugned order has confirmed the Service Tax of Rs.3,63,321/- on the differential value of Rs.29,31,401/- during the period 2005-06 to 2008-09. In the impugned order, the adjudicating authority has given a finding to work out this amount of Service Tax which is reproduced below : - "14. In the SCN it is also alleged that during the period from 2005-06 to 2008-09 they suppressed the service value of Rs. 2,87,12,269/- resulting into short payment of service tax of Rs. 35,45,725/-. The n....
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....ctual service value received by them. But the excess declaration of value of service in their ST-3 returns during 2006-07 and 2008-09 in comparison to their actual receipts of taxable service value during these years has not been considered in the taxable value while calculating the total differential value and short payment of service tax thereon. Thus the method adopted for calculation of differential value in the service tax is not correct and fair and the actual differential value during these years is Rs. 29,31,401/- only which has not been disputed by the noticee in their defence reply or otherwise. Accordingly service tax of Rs. 3,62,321/- on the differential value of taxable service of Rs.29,31,401/- during the period from 2005-06 t....