2025 (8) TMI 497

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o M/s.BSNL Offices at Chennai, Madurai, Salem and Trichy. During audit of their accounts, it was noticed that they also provided Manpower Recruitment and Supply Agency Service. It was further noticed that they had short paid service tax of Rs.27,09,072/- for the services provided by them during the period from April 2005 to December 2009. Hence, a Show Cause Notice dated 22.10.2010 proposing to demand service tax along with interest and to impose penalties under Sections 76, 77 & 78 of the Finance Act, 1994 was issued to the Appellant. The Appellant appears to have filed reply which was considered by the Adjudicating Authority during adjudication and vide Order-in-Original No.STC/09/2013- ADC(LTU) dated 14.03.2013 however, the Adjudicating ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....be set aside; that their activity is covered under the category of Works Contract as it involves supply and service; that the Works Contract Service was introduced w.e.f 01.06.2007 and hence, the demand prior to 01.06.2007 is not tenable and liable to be set aside; that they were engaged in supply and service of electrical goods and erection/installation and mounting thereof; that they were availing 67% exemption on the gross value of contract including value of goods; that the impugned order has not considered this at all but rejected the abatement of 67% on the reference that they had not furnished any evidence; that they submitted sample work orders, supply order, invoice, payment orders, etc. which were issued to them by the BSNL to app....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o evade payment of tax" since, admittedly, the Appellant was alleged to have short paid the service tax. It is the case of the Appellant that they are not challenging the levy but however, they are questioning the penalty since there is no suppression or fraud alleged against them. From a perusal of Section 78, we note that Section 78 could be pressed into service only when any service tax has not been levied, or has been short- paid, or erroneously refunded, by reason of fraud or collusion or wilful mis-statement or suppression of facts or contravention of any of the provisions of this Chapter or of the rules made thereunder with the intent to evade payment of service tax, the person who has been served notice under the proviso to Section ....