2026 (4) TMI 6

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... By the impugned order the learned Commissioner (Appeals) modified and reduced the Service Tax demand to Rs.27,47,198/-. He also set aside the penalties imposed under Section 77(1) & 77(2) of the Finance Act, 1994. 2. The facts of the case in brief are that the Appellant is registered as a Works Contractor and providing services to a builder namely M/s Amrapali Group in Noida. In Financial Year 2016-17, invoices were issued to M/s Amrapali Group for an amount of INR 2,32,08,454/- which were never booked by the builder. On the basis of third-party data from the Income Tax Department, figures from ITR were taken and since statutory Service Tax returns (ST-3) were not filed by the Appellant, Show Cause Notice [SCN] dated 15.06.2021 was iss....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f cost, however, it has never been discussed in length in the Order-in-Original and the Order-in-Appeal under which Rule/clause of the Service Tax (Determination of Value) Rules, 2006, the taxable value has been worked to 40% of the value of services and 40% of the value of free of cost material has been taken for demanding Service Tax. The learned Adjudicating Authority and the learned Appellate Authority, both, have confirmed the demand of Service Tax on the value of works contract services actually charged in the invoices and the value of free of cost materials supplied by M/s Amrapali Centurion Park P. Ltd., which is in contravention of clause (ii)(A) of Rule 2A read with Explanation-1 given in the said Rules. 5. He further submits t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y arises as soon as invoices are generated, they have recorded the same instantly in their books of accounts. The Balance Sheet was audited and signed on 30.08.2017. However, SCN has been issued on 15.06.2021. How can it be construed that there was an intention to evade tax when Appellant has self-disclosed his liability prior to SCN. Extended period cannot be invoked. SCN for normal period could have been issued only till 24.03.2019. He accordingly prayed that the demand of Service Tax is liable to be set aside. 7. The learned Authorized Representative appearing for the Revenue justified the impugned order and prayed that the appeal filed by the Appellant, being devoid of any merits, may be dismissed. 8. Heard both the sides and peru....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... and the Balance Sheet and Profit & Loss accounts were prepared from such accounts which were open to all legal authorities. 11. We find that the bone of contention in this case is whether Service Tax could be charged simply on the basis of invoices issued or after completion of services. We further find that invoice under the Service Tax Rules, 1994, as provided in Rule 4(A), is required to be issued after completion of the service. The provisions of issuing invoices are as under:- "(1) Every person providing taxable service[, not later than [thirty] days from the date of [completion] of such taxable service or receipt of any payment towards the value of such taxable service, whichever is earlier, shall issue an invoice, a bill....