2025 (9) TMI 128

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....n providing Renting of Immovable Property Services and accordingly, were registered with the Service Tax department. Appellants were also availing Cenvat credit on input services used for providing the output services. During the course of service tax audit of the appellant for the financial year 2015-16 up to June 2017, it was observed that the appellant had received Maintenance and Repair Services for their warehouse from M/s M.V. Infrastructure, Indore. The said service provider had provided services of the value of Rs. 28,43,090/- and has also paid service tax of Rs. 1,43,253/- classifying the said services as Works Contract Services. 3. Department formed an opinion that since the services were that of Works Contract Services, the serv....

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....e tax was not initially paid. However, it was later paid along with the interest. In such circumstance, neither the show cause notice should have invoked the extended period of limitation nor there arises any reason for imposing penalty upon the appellants. It is further submitted that the service availed by the appellant was with respect to repair of its warehouse. In that circumstance, there was an abatement of 30% but the service tax demand confirmed has not considered the said abatement. Otherwise also the payment of service tax on RCM basis is revenue neutral as the appellant was eligible for Cenvat credit of such service tax paid. The decision of this Tribunal in British Airways Vs. CCE, Delhi - 2014 (36) STR 598 (Tri.-Del.)  has....

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....ices issued by M/s M.V. Infrastructure service provider have availed certain abatement before payment of service tax whereas if the service provided by M/s M.V. Infrastructure would have been pure "Repair and Maintenance" service they would have paid service tax on total invoice value and not on abated value as there is no abatement available on 'Repair and Maintenance' service they would have paid service tax on total invoice value and not on abated value as there is no abatement available on 'Repair and Maintenance' service. It further proves that the service provider themselves treated their output services as "Work Contract Service" and accordingly had paid service tax under RCM. 8. Finally it is submitted that the appellant has failed....

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....50% each. As calculated by the department, the service tax paid by the service provider M/s M.V Infrastructure i.e. an amount of Rs. 1,43,253/- is slightly less that 50% of the taxable value with respect to the impugned service. I further observe that since the service received were admittedly for the repair of the appellant's warehouse that Notification No. 11/2014 dated 11.07.2014 shall also become applicable. The said notification brought the following change to the service tax (Determination of Value) Rules 2006: S. No. In case of works contracts entered into ST shall be payable on ..% of the total amount charged for the works contract A For execution of Original Works 40% B In case of works contract, not covered under su....