2026 (5) TMI 580

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....e 7(C) of the Service Tax-Rules, 1994 in the impugned order shall remain unchanged." 1.2 Earlier appeal filed by the appellant was dismissed on the ground of maintainability as the disputed amount of service tax involved in the appeal is Rs.60,676/-, much below the amount of Rs.2 lakhs as per second proviso to Section 35B(1). However, Hon'ble High Court vide order dated 27.01.2026 in Central Excise Appeal No 3 of 2026 remanded the matter to the Tribunal. 2.1 Appellant is engaged in providing taxable services as defined by Section 65B(44) of the Finance Act, 1994 and are liable to pay service tax as per the provisions of Section 66B ibid. Appellant had not obtained Service Tax Registration as required under Section 69 of the Finance Act, 1994. 2.2 On the basis of the information received from Income Tax Department, it was observed that appellant has provided taxable services during the F.Y. 2015-16 but have not paid due service tax. 2.3 Inquiries were initiated and appellant vide letter dated 07.11.2019 was asked to provide the documents i.e. Form ST-2; details of nature of work/services provided; ST-3 returns, Bills Invoice/ Job-work bills issued towards services provid....

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....7660 15610 2016-17 107880 16181 G. Total 9700093 1393778 Service Tax payable on Reverse Charge Basis Period Legal Fees Service Tax (Inclusive of Cess) 2015-16 5000 725 2016-17 5000 750 TOTAL 10000 1475 2.6 Alleging suppression show cause notice dated 18.12.2020 was issued to the appellant asking them to show cause as to why- "(i) An amount of Rs.1,38,64,902/-(Rupees One Crore Thirty Eight Lakh Sixty Four Thousand Nine Hundred Two Only) should not be treated as the value of taxable services provided by them during the period from Apr 15 to Jun 17, and accordingly Service Tax amounting to Rs.13,95,253/- (Rupees Thirteen Lakh Ninety Five Thousand Two Hundred Fifty Three Only) including Education Cess, Secondary & Higher Education Cess. Swachh Bharat Cess and Krishi Kalyan Cess not paid should not be demanded and recovered from them under proviso to Section 73(1) of the Finance Act, 1994 as amended read with Section 174 of the CGST Act, 2017; (ii) Interest at the appropriate rate should not be charged and recovered from the "Noticee' in respect of amount of service tax mentioned at S.N. (i) above under....

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.....2000/- (Rupees Two Thousands only) upon the Noticee under Section 77(1)(c) of the Finance Act. 1994 read with Section 174 of CGST Act, 2017 as discussed above. (vi) I impose a penalty of Rs.2000/- (Rupees Two Thousands only) under Section 77(1)(d) of the Finance Act, 1994 read with Section 174 of CGST Act, 2017 upon the Noticee as discussed above. (vii) I impose a penalty of Rs.2000/- (Rupees Two Thousands only) upon the Noticee under Section 77(2) of the Finance Act, 1994 read with Section 174 of CGST Act. 2017 as discussed above. (viii) I impose a penalty of Rs.20000/-(Rupees Twenty Thousand only) upon the Noticee under Section 70 of the Finance Act. 1994 read with Rule 7(C) of Service Tax Rules, 1994 read with 174 of CGST Act. 2017 as discussed above." 2.8 Aggrieved appellant have filed appeal before Commissioner (Appeals) which has been disposed of as per the impugned order referred in para 1 above. 2.9 Aggrieved appellant have filed this appeal. 3.1 I have heard Shri S.P. Ojha & Ms Stuti Saggi, Advocate appearing for the appellant and Shri Abhishek Mukharjee and Shri Prashant Kumar, Authorised Representatives appearing for the revenue. 3....

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....PWD, Mainpuri CB NO- 29/ΕΕ/2015-16 1696760   5. Construction Division PWD, Mainpuri CB No-56/EE 2015-16 625825 1710946 6. Construction Division PWD, Mainpuri CB No-69/EE 2015-16 231825 793200 7. Executive Engineer Provisional Division PWD, Mainpuri CB No- 30/ΕΕ/2016-17   2488730 8. Construction Division PWD, Mainpuri CB No-43/EE /2016-17   93571 9. Construction Division PWD, Mainpuri CB No- 41/EE/2016-17   922239 10. Construction Division PWD, Mainpuri CB No- 52/EE/2016-17   99965 11. Construction Division PWD, Mainpuri So No-2041/4 Mg   98768 12. Construction Division PWD, Mainpuri So No-2087/4 Mg   98768 13 Construction Division PWD, Mainpuri So No-2105/4 Mg   98725 14 Construction Division PWD, Mainpuri So No- 342/4 Mg   98415   Total 7046035 6503327   Gross total received in Form 26AS 1,35,49,362 4.10 On perusal of the Form 26 AS, it is evident that the payment of Rs. 1,35,49,362/- during the period 2015-16....

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....r i.e. 2015-16 when they have received Rs.1,07,660/- only towards taxable service which clearly falls below threshold exemption under Notification No. 33/2012-ST dated 20.06.2012. 4.13(1) It is observed that appellant has provided Form 26AS, copy of ITR, copy of work order no.130/EE dated 26.02.2014, 106/EE dated 31.12.13 & 48-EE dated 10.10.14 and payment certificates issued by Executive Engineer, PWD, Mainpuri in their support that they have provided exempted service and do not have any other taxable receipts in 2014-15. On perusal of these documents it is found that the appellant has been awarded work of construction/maintenance of road from provincial division, Mainpuri and has received Rs.37,53,780/- as per Form 26AS and ITR for the period 2014-15 against the work orders no. 130/EE dated 26.02.2014, 106/EE dated 31.12.13 & 48-EE dated 10.10.14 from provincial division, Mainpuri. Thus, I find that the appellant has Rs.37,53,780/- from provincial division, PWD, Mainpuri for construction of road which is exempted under Notification No. 25/2012-ST dated 20.06.2012. Since as per the ITR and Form 26 AS, the appellant has no other income except exempted income of Rs.37,53,78....

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....msp; 4.5 From perusal of the above documents, it is evident that the receipt against which demand of service tax has been made are in fact towards the supply of material. As these are in relation to supply of material and have been duly assessed by the state VAT authorities the same is outside the preview of service tax, the demands made in respect of this needs to be set aside. Undisputedly as evident from the appeal memo filed before the Commissioner (Appeal) it is evident that these documents were also made available to Commissioner (Appeal) also. 4.6 A demand of Rs 1475 has been made on the appellant in respect of legal fees, reflected as expense in the balance sheet of the appellant. Appellant have not disputed this demand in their appeal filed. From the prayer made in the appeal memo reproduced below it is evident that they have sought relief only in respect of the demand made in respect of the four instances of supply of material: "PRAYER (i) That the order dated 25.05.2023 of Commissioner (Appeals) confirming the demand of service tax may kindly be set aside to the extent as requested in this appeal memo. (ii) The interest demand may kindly be qua....

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.... items and submit your bill in duplicate daly wereceipted with Rs. 1.00 Revenue Stamp for purpose of payment to this office. purpose of payment to this office. No Description of tea Quantity Rate (Rs.) Amount (Rs.) Collection of 22.4-53 mm stome ballast of approved quarry. and approved quality including loading & unloading and stacking at site including royalty, Octri, toll tax, vat etc. complete. 37,00 2765,00 83905 .. 2 Collection of stone dust of approved quarry and approved quality including loading & unloading and stacking at site including royalty, Octri, toll tax, azt etc. complete. 7.50 . 1995 .- 14962.50 Total 98767.50 Collection of stone dust of approved quarry and approved quality including loading & unloading and stacking at site including royalty, Octri, toll tax, azt etc. complete. Executive Engined .C.D.P.W.D ; Mainpy - Copy to 1- A.E./J.E for information & n.a pl 2- DAO / PAC for information & n.a pl Executive Engineer C.D.P.W.D Mainpuri TAPETE 5/15(28) OFFICE OF THE EXECUTIVE ENGINEER CONSTRUCTION DIVISION P.W.D. MAINPURI Supply Order Ann-9 (80) Dale ... Letter No ...... To, Sti Nam singh Devi Road, Karaha....

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