TaxTMI 
TaxTMI 
2025 (7) TMI 414
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....d in ST-3 Returns. Accordingly, Demand cum Show Cause Notice SCN dated 30.12.2020 was issued to the Appellant proposing to demand service tax amounting to Rs.95,35,411/- alongwith applicable interest and to impose penalty under Section 78 & 77 of the Finance Act, 1994. 3. Reply to the SCN was filed admitting the total liability of Service Tax payable by the Appellant amounting to Rs.4,39,621/- and the Appellant deposited Rs.3,48,859/-. against the ST-3 Return. The Adjudicating Authority vide the Order-In-Original dated 08.04.2022, recalculated the service tax liability and confirmed the demand of Rs.95,262/- alongwith applicable interest and dropped the demand of service tax amounting to Rs.94,40,149/-. He further imposed penalty of Rs.10,000/- each under Section 77(1)(b) & Section 77(1)(c) and also imposed equal penalty under Section 78 of the Finance Act, 1994. 4. Against the Order-In-Original the Department filed appeal before the First Appellate Authority. Learned Commissioner (Appeals) observed that in absence of complete records and documents, the appeal cannot be decided at the appellate stage and remanded the matter to the Original Adjudicating Authority. He set aside....
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....ellant is enclosing the certificate dated 25/03/92 issued u/s 12AA as well as the screenshot of the website of Central Board of Direct Taxes., which corresponds that Maharishi Ved Vigyan Vishwa Peetham is an exempted institution under Section 12A of the Income Tax Act, 1961. Further, the fact that Meditation Hall and Yagyashala can only be used for religious purposes by general public, is a matter of common knowledge, as is also evident from the screenshot of website of Maharishi Ved Vigyan Vishwa Peetham. Thus, the adjudicating authority has rightly granted benefit of exemption to the appellant. Copy of certificate u/s 12AA and screenshot of the website of Central Board of Direct Taxes together with screenshot of website of Maharishi Ved Vigyan Vishwa Peetham are part of the Appeal Paper Book as Annexure-1. B.3 Before the Commissioner (Appeals) a ground was raised, that the adjudicating authority has made no discussion regarding the relevance of the certificate with respect to Section 11AA of the Income Tax Act, 1961, is completely misplaced, as Serial No. 13(c) of Notification No. 25/2012-ST dated 20.06.2012 refers to Section 12AA and not Section 11AA. ....
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....rounds raised by the respondent loses force. However to rest the controversy, the appellant is submitting copy of certificate dated 04.01.2016 issued by M/s Hindustan Construction Co. Ltd., certifying that the appellant has completed work against Work Order No. 14019124 dated 25.07.2014 as Annexure-2. This fact is also verifiable and substantiated by virtue of form 26AS issued by Income Tax Department certifying that the payment in dispute was made to the appellant by HCC u/s 194C of the said Act. C.4 The Commissioner (Appeals) erred in accepting the contention of the respondent without giving any independent reasoning of its own, which is clear from the following findings:- 4.2 I find that the adjudicating authority has allowed exemption in respect of work done to M/s Hindustan Construction Company Ltd under Entry No 13 of the Mega Notification in respect of services provided by the sub contractor providing services by way of works contract to another contractor providing works contract services which are exempt. It has been contended by the Department that the work order provided by the respondent is unsigned and has no sanctity to be accepted as a work order/ag....
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....be equivalent to the gross amount charged for the works contract less the value of property in goods transferred in the execution of the said works contract. M/s Aditya Birla Nuvo Ltd. D.2 In the present case, the appellant submitted purchase bills of the goods consumed in the execution of works contract along with sample copies of bills and after examining and verifying the same, the adjudicating authority determined the value of service portion in works contract in terms of Rule 2A(i) above, by reducing the cost price of the material consumed from the amount of gross receipts, as under Receipts as per form 26AS Material consumed Value of Services Tax @ 15% Tax payable 2,91,19,512/- 2,75,77,318/- 15,42,194/- 2,31,329/- 2,31,329/- D.3 Before the adjudicating authority, the appellant submitted a chart of purchase list for M/s Aditya Birla Nuvo Ltd., which contained the description of party name, date of purchase, Invoice No., Type of Purchase, Amount, CST/VAT Paid, Net of Taxable Amount as well as Delivery address. From a perusal of this chart, it is absolutely clear that although the material for consumption were made by the ....
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....med in the execution of works contract along with sample copies of bills and after examining and verifying the same, the adjudicating authority determined the value of service portion in works contract in terms of Rule 2A(i) above, by reducing the cost price of the material consumed from the amount of gross receipts, as under:- Receipts Material consumed Value of Services Tax @ 15% Taxpayable 1,77,61,219/- 1,65,08,529/- 12,52,690/- 1,87,904/- 1,87,904/- E.2 From the above chart of tabulation, it is fully established that out of total receipt of Rs. 1,77,61,219/- the material consumed amounted to Rs. 1,65,08,529/-. Before the adjudicating authority, the appellant submitted copy of respective work orders as well as the purchase invoices with a view to justify the total receipt as well as value of goods transferred. The aforesaid fact was further substantiated by a copy of Cost Sheet submitted by the appellant to M/s Azim Premji Educational Trust, which is enclosed herewith as Annexure-4 for ready reference. E.3 Apart from above, the total receipt as well as goods transferred/consumed are also ve....
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....1961(43 of 1961) and meant predominantly for religious use by general public;. In view of the above, I find that party is not liable for payment of Service tax on amount received from them. 24. Now I come to issue no. (ii), after going through the work order it is observed that Mis. Hindustan Construction Company Limited as main contractor had received work order for constructing the diversion dam of 65 height across tiver Alakhnanda for Vishnugad Pipalkoti Hydro Electric Project, harnessing a gross head of 237m in Chamoli District owned by the Uttarakhand State and which are exempted under para 12 (d) of Notification no. 25/2012-ST dated 20.06.2012. In this regard, M/s. Hindustan Construction Company Limited had placed work order to the party (sub contractor) vide no. 14019124 dt. 25.07.2014 for supply and erection of prefab in connection with the project of Vishnugad Pipalkoti Hydro Electric Project in Chamoli District. It is also observed that party as sub contractor has provided works contract services to M's. Hindustan Construction Company Limited for supply and erection of prefab for various structures for construction a Dam for Vishnugad Pipalkoti Hydro....
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....engineering, supplying and erecting & commissioning of prefab structure of 120 flats for workers. In this regards party has produced purchase invoices for material consumed for the execution of the above work and thus has claimed the benefit of Rule 2A (1) of Service Tax. (Determination of values, Rules, 2006). It is observed from the invoices submitted by the party that they had purchased materials from Hil Limited, Ganesh Steel, Gupta Peris, Joyous Marketing & Impex Pvt.Ltd, Maa Enterprises. Rai Enterprises for the total amount of Rs. 27577318/- and the materials has been consumed for construction of flats at the site of Jayshree Textiles unit of M/s Aditya Birla Nuvo Limited. The party had also awarded another work order from Mis. Azim Premji Educational Trust for supply of material as well as construction of foundation work. In this regards party has again produced purchase invoices for material consumed for the execution of the above work and thus has claimed the benefit of Rule 2A (i) of Service Tax, (Determination of values, Rules, 2006). It is also observed from the invoices submitted by the party that, they had purchased materials from Bharat Pip....
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....o to Section 73(1) of the Act along with interest under section 75 of the act, is sustainable. 28. Now I come to issue no. (vi) In the view of above discussion, I find that the party has deposited service tax on self assessment basis and thus all the service tax, which has been collected from their clients, has been deposited by them. I do not find that party has collected any amount of Service Tax and has not deposited the same to the government. Thus, I hold that the party is not liable to pay service tax under Section 73A of the finance Act, 1994along with interest Section 73B of the Finance Act, 1994 and the demand of the same under section 73A along with Interest under Section 73B of the Act is not justified. 29. Now I come to issue no. (vii), invocation of extended period of limitation for demand of service tax and proposed penalty under Section 78 of the Act are concerned, I find the case is one of willful suppression of facts with clear intent to evade payment of tax. From the facts of the case, it is abundantly clear that the party have registered themselves with the department for providing services "Tour operator services, Travel agent for booking of pa....