TaxTMI 
TaxTMI 
2024 (12) TMI 350
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....ee of Rs. 20,000/ - for non filing of ST-3 returns are set aside 1.2 By Order in Original No 23/ST/Adj/AC/D-I/2021 dated 17.11.2021 following was held: "ORDER (i) I order that the amount of Rs.78,20,357/- (Rupees Seventy Eight Lakhs Twenty Thousand Three Hundred and Fifty Seven only) charged and received by the party from their customers during the Financial Year 2014-15 to 2017-18 [01.10.2014 to 30.06.2017] in lieu of providing the taxable services, to be treated`as the taxable value of taxable services provided by them for the purpose of charging the service tax. Accordingly, I confirm the demand of Service Tax amounting to Rs.9,00,763/- (Inclusive of Service Tax, Education Cess and Higher & Secondary Education Cess/ Swachh Bharat/ Krishi Kalyan Cess) under the provisions of Section 73(2) of the Finance Act. 1994 invoking provisions of an extended period of demand against M/s New Tech Transformers, G-34,Road No.16, Udyog Kunj, Site-V, Panki, Industrial Area, Kanpur; (ii) I order that the amount of Rs.14,16,012/- was paid as freight by the party during the Financial Year 2014-15 to 2017-18 [01.10.2014 to 30.06.2017] in lieu of receiving the taxable services, to be treated a....
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....ired by the department with intent to evade service tax; (vii) I impose a penalty of Rs. 10,000.00 (Rupees Ten Thousand only) M/s New Tech Transformers, G-34,Road No.16, Udyog Kunj, Site-V, Panki, Industrial Area, Kanpur, under Section 77(1)(d) of the Act ibid upon the party for their alleged failure to pay the Service Tax electronically against the services provided by them; (viii) I impose a penalty of Rs. 20,000.00 (Rupees Twenty Thousand only) upon M/s New Tech Transformers, G-34,Road No.16, Udyog Kun), Site-V, Panki, industrial Area, Kanpur under Section 70 of the Finance Act, 1994 read with Rule 7C of Service Tax Rules 1994 for not filing ST-3 returns for the period from April 2017 to June 2017." 2.1 The appellant is registered with the department under Service Tax registration No.AAGFN6120LST001 for providing services taxable under Finance Act, 1944. 2.2 On the basis of information received from the Income Tax Department, an enquiry has been initiated against the appellant and record has been called for. The appellant has produced copy of balance sheet/profit & loss account, FORM 26As, ITR for the F.Y 2014-15 to 2017-18 and did not provide copy of any agreement/ work o....
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....ed and recovered from the party against the Audit Fee paid by them during the period covered in the Show Cause Notice under the provisions of Section 73(1) of the Finance Act. 1994 invoking provisions of extended period of demand; (iv) interest-at the appropriate rate for the relevant period till the payment of the Service Tax should not be demanded and recovered from them under the provisions of Section 75 of the Act; (v) Penalty should not be imposed upon them under Section 78 of the Finance Act, 1994 for the reasons as discussed above (vi) a penalty under Section 77(1)(c) of the Act ibid should not be imposed upon the party as the party failed to furnish information and documents called for by the Central Excise officer (vii) a penalty under Section 77(1)(d) of the Act ibid should not be imposed upon the party as they failed to pay the Service Tax electronically against the services provided by them; (viii) a penalty under Section 77(2) of the Act ibid should not be imposed upon the party as they failed to file Service Tax Return for the period April „2017 to June '2017. 2.6 Show Cause Notice was adjudicated as per order in original referred in para 1.2 abov....
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....ant. Last letter dated 29.05.2020 was issued by the department to furnish information/documents within three days but again the appellant has not responded, therefore, department has no option but issue SCN on the basis of documents submitted by the appellant vide letter dated 04.10.2019. Thus, I find no force in the contention of the appellant. 4.3 The appellant has contested that the Works Contract Services provided to M/s PVVNL are covered under entry No. 12 of the mega exemption Notification No. 25/2012-ST dated 20.06.2012, therefore, demand of service tax on the same is not sustainable for the work done against contracts entered prior to 01.03.2015. I observe that entry No. 12 of the mega exemption notification 25/2012-ST dated 20.06.2012 provides as under: 12. Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fiting out, repair, maintenance, renovation, or alteration of- (a) a civil structure or any othr original works meant predominantly for use other than for commerce, industry, or any other business or profession (lomitted w.ef 01.04.2015) (b) a historical ....
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....ntioned. In Para 6 of said work order it has been mentioned that service tax along with educational cess shall be payable extra as applicable on labour charges only and for other items viz HV/LV leg coil, transformer oil excise duty shall be payable. Thus, it is evident that there is definite clause in the work order for payment of service tax on the labour charges received by the appellant. The appellant has not produced any bill or invoice which shows that service tax has not been charged on the labour charges for repair of damaged transformers. I also observe that entry No. 12 of the notification No. 25/2012-ST dated 20.06.2012 exempts services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession. Thus, it is evident repair of damaged transformers of power corporation limited do not come under repair or maintenance of a civil structure or any other original works, therefore, entry....