TaxTMI 
TaxTMI 
2025 (5) TMI 1896
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....als) has partially allowed the appeal to the extent of Rs. 59,67,430/- pertains to 'Works Contract Services' and confirmed the demand of Rs. 8,69,305/- along with interest and penalty. 2. The brief facts of the case are that the appellant was registered with the Department under the category of "Works Contract Services' providing Electrical Installation, Civil Construction and Works Contract Services to Ajmer Vidhyut Vitran Nigam Ltd. AVVNL Nagar Parishad, M/s Jindal Saw Limited and M/s Nav Durga Electro Construction Pvt. Ltd. An inquiry made by the department revealed that the appellant was engaged in providing services of "Erection, Commissioning & Installation to AVVNL without obtaining service tax registration and without paying se....
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....lue of Taxable Services (Rs.) Service Tax (Rs.) 2014-15 Jindal Saw Limited 10,83,782/- 1,33,955/- 2015-16 Nagar Parisad 45,66,333/- 6,62,118/- Nav Durga Electro Construction Private Limited 5,05,050/- 73,232/- Total 61,55,165/- 8,69,305/- Against the said order, the appellant has filed the present before the Tribunal. 3. Learned counsel for the appellant submitted that the show cause notice no where mentions that the appellant is liable for service tax under (i) Works Contract Services and (ii) Erection, Installation and Commissioning Services. As each service is specific and are substantially distinct from each other, thus the burden is on the department to prove under which services the appellant....
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....y should be set aside. Also, penalty imposed under Section 77(1)(a), 77(2) and late fee imposed are not sustainable and should be set-aside. 4. Learned Authorized Representative for the Department submitted that the show cause notice has been issued invoking charging sections [65B(44), 65B(51), 66B]. He contended that there was no classification of services in the post negative period. He submitted that exemption from service tax granted on services provided to the Government, a local authority or a government authority by way of construction, erection, commissioning, installation, completion, fitting out repair, maintenance of a civil structure or any other original works meant for predominantly for use other than commerce, industry was w....
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.... tax, therefore, extended period and penalty under section 78 is rightly invoked. 5. We have heard the Ld Counsel for the appellant and the learned authorised representative for the Department. A bare perusal of the facts indicate that the appellant was engaged in providing services of Erection, Commissioning & Installation Services and works contract to government agencies of the Government of Rajasthan viz., Ajmer Vidyut Vitran Nigam Ltd., Nagar Parishad, Bhilwara, and other companies without payment of service tax. We note that the impugned order has held that the services provided to Ajmer Vidyut Vitran Nigam Ltd., is not liable to service tax as the said service had been provided to Governmental bodies in the public interest. 6. The ....
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....ome of which were cited before us and after giving our anxious consideration, we would be more than justified to conclude and also compelled to hold that every taxing statute including, charging, computation and exemption clause (at the threshold stage) should be interpreted strictly. Further, in case of ambiguity in a charging provisions, the benefit must necessarily go in favour of subject/assessee, but the same is not true for an exemption notification wherein the benefit of ambiguity must be strictly interpreted in favour of the Revenue/State. Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 52. To sum up, we answer the reference holding as under - (1) Exemption notification should be interpreted strictly; the bu....