TaxTMI 
TaxTMI 
2026 (3) TMI 1372
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....original Adjudicating Authority for passing legal and proper order in a reasoned manner. The appeal is accordingly, disposed of in above terms." 2.1 Appellant is registered with the Service Tax Department w.e.f. 26.07.2010 and engaged in providing taxable services under the category of Consulting Engineer Services. They are providing services mainly to M/s Military Engineering Services (MES), Northern Central Railway (NCR), Airport Authority of India (AAI-CATC). 2.2 An inquiry was initiated against the appellant and they were asked to provide information for the period 2010-11 to 2014-15 vide letter dated 23.10.2015. A show cause notice dated 23.10.2015 was issued to the appellant for the period 2010-11 to 2014-15 demanding service tax on the amount allegedly short paid. 2.3 Subsequently, for the period from 2015-16 to 2016-17 again certain information was called for and the appellant provided the information in the form of Form 26AS, Balance Sheet and profit and loss account for the said period along with the copy of challans they also provided work order and bills/invoices raised to the AAI, MES and NCR for the services provided during this period. 2.4 In terms of Sec....
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.... applicable under Section 75 of the Act, ibid. (ii) The penalty should not be imposed upon them under Section 76 and 77 of chapter V of the Finance Act, 1994 for each default for not paying service tax in accordance with the provision of Section 66, 67, 68 of chapter V of the Finance Act, 1994 read with Rule 6 and 7 of the Service Tax Rules, 1994 and Service Tax (Determination of Value) Rules, 2006." 2.7 After following the principles of natural justice taking into the consideration and the submissions made by the appellant, statement of demand was adjudicated as per Order-in-Original No.47/ST/DIV-II/ALLD/2023-24 dated 30.03.2024 by holding as follows:- "Order I drop the proceedings initiated vide SCN No.ST/RUII/SCN/Titco Electricals/267/2015/55 dated 19.04.2018 against the party, M/s Titco Electricals, 3, Thornhill Road, Civil Lines, Allahabad-211001 (U.P.)." 2.8 Aggrieved by the dropping of demand, revenue filed appeal before Commissioner (Appeals) which has been disposed of as per the impugned order. 2.9 Aggrieved appellant have filed this appeal. 3.1 I have heard Shri Manish Kumar Deorah learned Chartered Accountant appearing for the appellant a....
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.... on the issue of extending exemption for the consideration in lieu of services provided against agreements, mentioned in the table above. I further note that the Adjudicating Authority dropped the whole demand however the appeal has been filed on the issue that the taxable value of Rs. 6871058/- has wrongly been not confirmed by the Adjudicating Authority as the nature of work covered in the above mentioned table is outside the scope of entry no 12A of the Notification No. 25/2012-ST dated 20.06.2012, as amended. 5.2 I note that the issue is whether the respondent has provided works contract service which is covered under original work or not. The appeal has been raised on the ground that in the above mentioned contracts, the respondent has provided services regarding repair of electrical equipments which is neither civil structure nor original work as per the provisions of entry no. 12A of the Notification No. 25/2012-ST dated 20.06.2012, as amended. The relevant provisions of the clause is given as under- 12A. Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completi....
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....at the order is totally a non-speaking order and do not record any reason for coming to conclusion and setting aside the Order-in-Original. On merits of the issue, Order-in-Original records as follows:- "It is observed that in the instant case, statement of demand of service tax has been issued on the basis of differential value of Gross Receipts as per Balance Sheet/Form 26AS and Gross amount declared in ST-3 returns pertaining to period 2015-16 and 2016-17. It is observed that the party has submitted that they are engaged in contract works and have provided services to NCR, CWE/Air Force and Airport Authority of India. The value shown in the balance sheet pertains to amount received from these service recipients only. It has been submitted by the party that earlier SCN for the prior period on the similar work contracts has been adjudicated in their favour vide Order in Original No.ST-30/2019/ADC-III/51 of 2022 dated 24.11.2022 and the work contracts executed by them are eligible for cum tax benefit, abatement and RCM benefits as well as some work orders are exempted as per the nature of the works. In the instant case, it is observed that in order to asc....
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....e of work 8. CWE, Air Force/All aha bad 81273/07/E8 dated 25.10.2016 Special repair for replacement of HT OH line to UG cable 4828 70 Taxable nature of work 9. CWE, Air Force/All aha bad 86584/19/E8 dated 21.10.2014 Repair & Maintenance of Transformer, fuse, carrier and connected HT line 1431 445 Exempted as per S. No.12 A of the Notification No.25/ 2012- ST dated 20.06.2012 as the work order pertains to period prior to 01.03.2015 10. GE(West) Allahabad GE/W/ALD/57/2 015-16 dated 11.02.2016 E/M service at pump house sewage pump swimming pool DG set & other Misc. work 1915692 Taxable nature of work order 11. GE(West) Allahabad GE/W/ALD/82/2014-15 dated 12.09.2013 Spl. Repair for replacement of OH line to UG cable 1419260 Exempted as per S. No.12A of the Notification No.25/2012-ST dated 20.06.2012 as the work order pertains to period prior to 01.03.2015 12. AAI AAI/CATC/C/Pro no.Cell Job contract unskilled/2014-15/865 dated 20.08.2014 Unskilled manpower supply 1363200 Taxable nature of work order 13. AAI AAI/CATC/C/MT/WO-01.2014-15/92-95 dated 25.02.2015 Providing of MT driver and he....
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....E8 dated 20.10.2014 1406874 710000 7. CWE, Air Force/Allahabad 86584/19/E8 dated 21.10.2014 1431445 970000 9. GE(West) Allahabad GE/W/ALD/82/2014-15 dated 12.09.2013 1429260 117227 Total 6871058 Thus, it is observed that party has received Rs.68,71,058/- during the period 2015-16 to 2016-17 on account of exempted nature of work contracts and therefore this amount on account of exempted nature is not leviable to service tax. Further, on analysis of taxable nature of work contracts, it is observed that valuation of the taxable value has to be done in accordance to provisions of Rule 2A(ii) of the Service Tax (Determination of Value) Rules, 2006 which provides abatement of 60%/30% from the gross amount as per nature of work to be original or other Repair/maintenance category as under: "Rule 2A. Determination of value of service portion in the execution of a works contract. Subject to the provisions of section 67, the value of service portion in the execution of a works contract, referred to in clause (h) of section 66E of the Act, shall be determined in the following manner, namely:- (i) Value of s....
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....ntract category are eligible for abatement as per category of the work contract as Rule 2A(ii) of Service tax (Determination of Value) Rules, 2006 as under: S N o. Name of service receiver Work order No./ date Name of work abatement admissible in gross amount Gross receipt against the work order during 2015-16 to 201718(upto June'17) as per Form 26AS Taxable value after abatement 1 CWE, Air Force/Allahabad 86745/06/E 8 dated 08.12.2015 Repair/maintenance of Transformer 30% 120663 5 844644 30% 137000 0 959000 2 CWE Air Force/Allahabad 81162/W/2 5/ES dated 18.06.2015 Provision of APFC panel, LT cable 60% 221749 0 886996 3 CWE, Air Force/Allahabad 81273/07/E 8 dated 25.10.2016 Special repair for replacement of HT Off line to UG cable 30% 434500 304150 4 GE/(West) Allahabad GE/W/ALD/ 57/20 1516 dated 11.02.2016 E/M service at pump house sewage pump swimming pool DG set & other Misc. work 30% 480000 336000 5 AAI Bha. Vi.Prs./Na VLP ra.Ka/Saha M. Pr. Abhi. (Vi)/Ka San/20 14- 15/1105/1125- 1133 dated 16.10.2014 ARMO of E&....
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....08.12.2015 Repair/maintenance of Transformer 30% 1206635 844644 30% 1370000 959000 2 CWE, Air Force/Allahabad 81162/W/2 5/E8 dated 18.06.2015 Provision of APFC panel, LT cable 60% 2217490 886996 3 CWE, Air Force/Allahabad 81273/07/E 8 dated 25.10.2016 Special repair for replacement of HT OH line to UG cable 30% 434500 304150 4 GE(West) Allahabad GE/W/ALD /57/2015- 16 dated 11.02.2016 E/M service at pump house sewage pump swimming pool DG set & other Misc. work 30% 480000 336000 5 AAI Bha.Vi.Pra./Na.Vi.Pra.Ka /Saha.M.Pr. Abhi.(Vi.)/K a.San/2014- 15/Ti- 05/1125- 1133 dated 16.10.2014 ARMO of E&M Installation 30% 45200 31640 15820 6 AAI Bha.Vi.Pra./Na.Vi.Pra.Ka/Saha. M. Pr. Abhi.(Vi.)/K a.San/2014- 15/Ti- 03/1766- 74 dated 26.05.2015 Supply & SITC of poles/Fittings/Panels work related to street light at CATC 60% 829946 331978 165989 60% 235108 94043 47021 7 AAI Bha.Vi.Pra./Na.Vi.Pra.Ka/Saha.M.Pr. Abhi.(Vi.)/Ka.San/2014- 15/Ti- 10/3000009/134857 dated 04.02.2016 ARMO of E&M installat....
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....of service receiver S. Tax liability under RCM of service provider 1. NCR Work Contract service(Exempted) 1406391 Nil Nil 2. CWE Work Contract service(Exempted) 5347440 Nil Nil Taxable work contract 5228625 2994790 449218 449218 3. GE(West) Work Contract service(Exempted 117227 - - - - Taxable work contract 480000 336000 50400 50400 4. AAI Taxable work contract 1200804 521047 78157 39079 39079 Manpower supply 5447743 5447743 817161 817161 - 19228230 9299580 1394936 856240 538697 It is observed that party has been found liable for payment of service tax Rs.5,38,697/- for the period 201516 and 2016-17. However, it is further observed that the party has already deposited service tax of Rs.6,52,257/- during the period 2015-16 and 2016-17 as per the chart B of the SCN issued to the party. Therefore, it is observed that party have discharged their service tax liability for the impugned period 2015-16 and 2016-17 p....