TaxTMI 
TaxTMI 
2025 (8) TMI 1065
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....(ii) I confirm the demand of interest under Section 75 of the Finance Act, 1994, at appropriate rate on the above amount of Service Tax not paid / short paid. (iii) I impose penalty of Rs.38,46,713/-(Rs. Thirty eight lakhs Forty six thousands Seven hundred thirteen only) under Section 78 of the Finance Act, 1994, for non-payment of due service tax by suppressing the value of taxable service with intent to evade payment of Service Tax." 2.1 The appellant is registered with the department with Service Tax Registration No. AAFCB462OHSD001 for rendering "manpower recruitment supply agency service, security/ detective agency service'. 2.2 During the course of service tax audit of records of the appellant, for the period 2015-16 to 2017-18 (upto June'17) it was observed that- appellant had claimed exemption from payment of service tax liability monetary consideration received by them in lieu of rendering manpower recruitment/supply agency services and security / detective agency services however, no documentary evidence to this effect was produced before the officers. There was difference in value declared by them in their ST- 3 returns, income in....
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....3 After hearing the authorized representative on 02.05.2025, the order was reserved. Subsequently vide letter dated 03.05.2025 (received on 05.05.2025 counsel for appellant requested that he may be allowed to file written submissions in the matter. The request was allowed in the interest of justice and the counsel filed written submissions which were received on 07.05.2025. 4.1 I have considered the impugned order along with submissions made in appeal and during the course of arguments. Written submissions filed by the appellant and received on 07.05.2025 have also been considered. 4.2 Impugned order records the findings as follows: "5. DISCUSSION & FINDINGS: I have carefully gone through the case records. I find that the adjudicating had confirmed the demand of service tax on the grounds that the benefit of reverse charge claimed by them in case of monetary considerations received by them from Chhata Sugar Mill, Mathura is not available for the appellant as provisions of Notification No. 30/2012 - Service Tax dated 20th June 2012 are applicable for individual, Hindu Undivided Family or partnership firm whereas, the appellant is private limited company and c....
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....ility of Rs. 1,62,623/- had been discharged by Chhata Sugar Mill. Now, on cross examining the said figures of the letter with the entries of Form 26AS for the respective period it is noted that month wise entries are matching in both the letter and entries of Form 26AS but, it is conspicuously noted that TDS had been deducted on Rs.15,48,900/- whereas, the said letter provides that service tax liability on Rs.12,73,841/- has only been discharged. Thus, nonpayment of service tax liability on differential amount of Rs.2,75,059/- is apparent on which due service tax liability at the rate of 14.5% of Rs.39,884/- was required to be discharged in 2015-16 itself. Also, it is on record that no service tax liability was discharged by Chhata Sugar Mill, Mathura, service recipient, on monetary considerations of Rs.13,16,323/- in 2016-17, which makes the appellant liable for payment of service tax liability on this amount. Thus, service tax liability at the rate of 15% on this amount of Rs.1,97,448/- was required to be discharged in 2016-17. Now, I take up the second contention of the appellant relating to rendering of manpower supply services City Montessori School and other....
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....ppellant relating to supply of saplings. In this regard, I find that the appellant has produced before me photocopy of invoice no. 121 dated 01.05.2015. 122 dated 01.05.2015, 128 dated 01.06.2015, 129 dated 01.06.2015, 139 dated 01.07.2015, 140 dated 01.07.2015, 147 dated 01.08.2015, 148 dated 01.08.2015, 57 dated 01.09.2015, 158 dated 01.09.2015, 174 dated 01.10.2015, 175 dated 01.10.2015, 188 dated 01.11.2015, 189 dated 01.11.2015, 193 dated 01.12.2015, 207 dated 04.01.2016, 215 dated 01.02.2016, 216 dated 01.02.2016, 225 dated 06.03.2016, 226 dated 06.03.2016, 251 dated 01.04.2016, 252 dated 01.04.2016 and 260 dated 03.05.2016, all issued to M/s. Jagit Enterprises involving value of Rs,31,461/- Rs.31,461/- Rs.31,461/- Rs.31,461/- Rs.31,920/-, R$-31,920/ - Rs.31,920/- Rs.31,920/- Rs.31,920/- Rs.31,920/- Rs.31,920/-, $.28,000/- Rs.28,000/-, Rs 28,000/- Rs.28,000/- Rs,28,000/- Rs.28,000/-, s 28,000/-, Rs 28,000/- Rs.28,000/-> Rs.32,200/- Rs.32,200/- and Rs.32,200/- respectively, totaling to Rs.6,97,884/- relate to supply of plant. However, it is quite surprising to note that invoice no. 194 had been issued on 01.11.2015 whereas, as detailed above invoice no. 193 h....
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.... Health Care on 30.06.2015 and invoice no. 138 had been issued by them to Sahaj E - Village 01.07.2015 and invoice no. 139 and 140 had been issued by them to Jagjit Enterprises on 01.07.2015, invoice no. 149 had been issued to M/s. VLCC Health Care on 31.07.2015 and invoice no. 147 and 148 had been issued by them to Jagjit Enterprises on 01.08.2015. These findings question the legitimacy of the invoices produced by the appellant. Therefore, in light of discussions made in the foregoing paras, I reduce along with interest and equal the demand of service tax to Rs.36,84,090/-, penalty after extending the benefit of Rs.1,62,623/- deposited by Chhata Sugar Mills on behalf of the appellant." 4.3 In the written submissions filed counsel submitted that,- The services provided to educational institutions are exempt under Notification No 25/2012-ST The required service tax on receipts from Chhata Sugar Mills, Mathura was deposited on RCM basis by Chhata Sugar Mills, Mathura itself. Relevant documents including the challans for payment of service tax on reverse charge basis are produced. If the same tax is again demanded from the appellant it would amount to dou....
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.... and goods to the educational institutions, Chatta Sugar Mills and E- Village and others is established by the 26AS of the Appellant which has been also produced. The relevant details are extracted below. Financial Year 2015-16 2016-17 Chahta Sugar Company 1548900 1316323 E Village Kendra 320171 889745 VLCC Health Care 108900 0 ABACUS 11065 37817 City Montessori School 3106450 9895350 Lalbagh Christian Educational Society 0 72386 R M L Mehrotra Pathalogy 0 312441 Matrashakti Construction 30670 0 U P Sugar Corporation 73353 0 Jagjit Enterprises 672000 672000 5871509 13196062 4.8 In the impugned order, Commissioner (Appeal) has sought to find certain faults in numbering and date of bills to discard them as evidence in these proceedings. He also states that appellant has failed to provide the copy of work orders etc in this regards. I do not find any merits in such approach as the factum of supply of services to educational institution etc., is well established by the 26AS of the Appellant, which clearly show that appellant was receiving amounts from these educational ....
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....fied and the remaining part of the service tax shall be paid by the service provider. Under this clause the Central government has issued notification no. 30/2012 dated 20.6.2012 notifying the description of specified services when provided in the manner so specified where part of the service tax has to be paid by the service receiver. The extent to which tax liability has to be discharged by the service receiver has also been specified in the said notification. The manner of operation of the reverse charge mechanism has been explained in this point. 10.1.2 What does a service provider need to indicate on the invoice when he is liable to pay only a part of the liability under the partial reverse charge mechanism? The service provider shall issue an invoice complying with Rule 4A of the Service Tax Rules 1994. Thus the invoice shall indicate the name, address and the registration number of the service provider; the name and address of the person receiving taxable service; the description and value of taxable service provided or agreed to be provided; and the service tax payable thereon. As per clause (iv) of sub-rule (1) of the said rule 4A "the service tax payable....