2026 (3) TMI 1201

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....on the third party data information (from income tax department), the appellant was observed to have raised the taxable amount against the provision of Manpower Recruitment Service to M/s. Donypolo Udyog Ltd. during the period from December 2015 to June 2017. However, they have not paid the service tax by wrongly availing the benefit of Notification No.30/2012-ST dated 20.06.2012 for which the appellants were otherwise not entitled. Accordingly, a Show Cause Notice bearing No.15-20/20-21 dated 14.10.2020 was served upon the appellants proposing the demand of service tax amounting to Rs.35,40,915/- along with the interest at appropriate rates and the proportionate penalties. Late fee of Rs.1000/- was also proposed to be recovered. The show c....

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....raders Vs. Commissioner of Central Excise, Indore reported as 2018 (10) GSTL 462 (Tri.-Del.), order under challenge (O-I-A dated 10.12.2021) is prayed to be set aside and the appeal is prayed to be allowed. 4. While rebutting these submissions, learned Departmental Representative, at the outset, has reiterated the findings arrive at the in the impugned order. It is submitted that the appellant had themselves classified their services as Manpower Recruitment/Supply Agency Service in their service tax returns and was paying service tax up to November 2015. For the period in dispute, the appellants started showing 'NIL' taxable value in their returns. It was acknowledged in the statement on behalf of the appellant that the 'NIL Returns' wer....

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.... providing Manpower Supply Service to the said concern till November, 2015. The same was being mentioned in their ST-3 returns too. Subsequent to December 2015 they started taking benefit on Notification No. 07/20125 which is nothing but an amendment of Notification No. 30/2012 (liability to be discharged under Reverse Charge Mechanism). The provision reads as follows: I. The taxable services,- (A).......... ................ (v) provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers to any person who is not in the similar line of business or supply of manpower for any purpose or service portion in execution of works contract by any individual, Hindu Undivided F....

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....ards the impugned service job work activity provided to M/s. Donypoly Udyog Ltd. and has also charged service tax. Non-payment of tax by service provider despite collecting the same is the definite act of evasion of tax. Though further mentioned in the said certificate, but there is no proof on record to prove that 100% service tax liability was discharged by M/s. Donypoly Udyog Ltd. This liability is of the service tax provider who collects the service tax from the recipient. The appellant admittedly being the service provider has failed to discharge the said liability. As already discussed above, no benefit of any exemption nor of the notification for Reverse Charge Mechanism was available to the appellant. Accordingly, we hold that the a....