2025 (4) TMI 1325

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....hnology, Middle Poin, Port Blair HO, Amlaman & Nicobar Islands, PIN CODE 744101 holder of Service Tax Registration No. ANHPK2600GSD002 or rendering Commercial Training of Coaching, have contravened the provisions of Section 88(1) of the Finance Act, 1994, inasmuch as they failed to pay Service Tax amounting to Rs.8,24,21,927/- (including Cess) in respect of the taxable services provided by them to their clients during the Financial Year 2009-2010 to 2013-2014. 2.2 M/s ICT (M/s India Computer Technology) provided services pertaining to various E-government projects such as Computer training. Data Entry, Bio-metric Data capture, Execution of National Population Register, Demographic Data digitization, Capturing of individual data ete, to M....

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....so billed to their clients and hence appeared that they flagrantly violated the provisions relating to levy and collection of service tax in respect of 'Business Auxiliary Service'. 2.6 Accordingly, a Show Cause Notice was issued for disallowance of the application filed by the noticee under VCES scheme 2013 under the provision of Section 111(1) of the Finance Act. 2013 and demanding Service Tax to the tune of Rs. 8,24,21,927.00 (including Cess) in terms of Section 73(1) of the Finance Act, 1994 along with interest, as applicable, in terms of Section 75 of the Act and also proposing imposition of penalty in term of Sections 77 (2) & 78 of the Finance Act, 1994. 2.7 The Noticee admitted the contention of the demand made in the show....

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.... (iii) As per Notification No.10/2013-ST dated 13th May, 2013 for availing VCES, any person who has filed return and disclosed true liability had not paid the disclosed amount of Service Tax, but the payment of declaration must be filed on or before 31st day of December, 2013. Here, the said noticee filed VCES application on 06.01.2014 and during the course of personal hearing, the Ld. Advocate of the said assessee confessed before the adjudicating authority that the said VCES application were rejected on the ground that they had availed Cenvat Credit while arriving at the service tax liability. The Adjudicating Authority found that nowhere in the said notification it was mentioned that the credit would be foregone, if not filed within sti....

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....dered to M/s ICT as sub-contractors. Accordingly, he found that M/s ICT is entitled to avail those credit of Service Tax which had been paid by the noticee (M/S-ICT) against bills raised by both the sub-contractors i.e. M/S- Tera Software Ltd. and M/s Swathy Smart Cards Hi-Tech (P) Ltd. This amount of credit should be adjusted against their net service tax liability. (vi) Further, the said noticee paid an amount Rs.58,92,327/- (Rs.41,32,586.00 Rs.17,59,741/-) before issuance of show cause notice on 31/12/2013, 02/7/2014 and 25/8/2014 to Govt. Exchequer for VCES benefit but the same application was rejected and the said amount is adjustable from their net service tax liability. (vii) The Adjudicating Authority found that th....

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....ds Hi-Tech (P) Ltd., sub-contractor of assessee M/s-ICT against their above service tax liability. (iv) Disallowed the application filed by the said assessee under Service Tax Voluntary Compliance Encouragement Scheme, 2013 under the provisions of Section 111(1) of the Finance Act, 2013. (v) Ordered for appropriation of the amount of Rs.58,92,327/-, already paid by the said assessee against their above service tax liability. (vi) Ordered to pay Rs.1,09,61,763/-. (vii) Ordered to charge and recover interest at appropriate rate on the amount of Rs.1,09,61,763/- mentioned at Sl. No.(vi) above under the provisions of Section 75 of the Finance Act, 1994. (viii) Refrained from imposing any penalty upon....

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....ot be paid due to their bonafide mistake in time by invoking Section 80 of the Finance Act,1994, the penalty can be waived. In this case, the respondent has showed their bonafide that they did not receive the payment from the clients for providing services and that is why, they could not pay the service tax in time. In that circumstances, it is observed from the audited balance sheet as well as in the books of accounts that income figures under sales of M/s Royal for amounting to Rs.1,38,67,081/- has been included while calculating the taxable value of service tax, if investigated properly, it should not have been included. Further, the report from Hyderabad Service Tax Division, confirmed payment of service tax by the Sub-contractor and th....