TaxTMI 
TaxTMI 
2026 (5) TMI 923
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.... Centre' through Agreement for Exclusive Service Centre [ESC] thereby attending 'Warranty Services' for home appliances. On the basis of information received from the Income Tax Department, especially Form 26-AS, it was revealed that appellant had received huge amount on account of providing declared services but have not paid service tax due thereon. As per the Returns, the appellant had discharged the service tax liability @50% of the schedule rate in terms of the provisions of Entry No.9 of Notification No. 30/2012-ST dated June 30, 2012. During the financial year 2014-15 to 2016-17, the appellant received a sum of Rs. 50,96,302/-. Show cause notice dated July 13, 2018 was issued to the appellant raising the demand of Rs. 6,21,602/- towa....
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...., as under:- As per Notification No. 30/2012-Service Tax dated 20.06.2012 following service come under reverse charge mechanism:- TABLE Sl.No. Description of service Percentage of service tax payable by the person providing service Percentage of service tax payable by the person receiving the service 1 in respect of services provided or agreed to be provided by an insurance agent to any person carrying on insurance business Nil 100% 2 in respect of services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road Nil 100% 3 in respect of services provided or agreed to be provided by way of sponsorship Nil 100% 4 in respect of servi....
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....s, the notification provides that in execution of works contract services both service provider and recipient are liable to pay 50% of service tax liability. The term 'works contract' is covered under 'declared service' as enumerated in Section 66E of the Act and defined in Section 65B(54). Section 66E(h) and Section 65B(54) reads as follows:- "Section 66E: Declared Services "The following shall constitute declared services, namely........ (h) Service portion in the execution of a works contract." Section 65B(54) defines "Works Contract" as "Works Contract" means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contrac....
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....nt has not provided any evidence towards payment of VAT nor any invoice or record showing transfer of property in goods, which is the basic requirement to fall within the definition of contract service. The very fact that the spare parts and the components used while providing the warranty services are supplied by LGEIL and not by the appellant brings it beyond the concept of works contact service. We also find merit in the submissions of the learned Authorised Representative for the Department that the appellant was not eligible for exemption under Notification No. 30/2012 as the period of dispute is 2007-2010, whereas the Notification is dated June 20, 2012. 6. The appellant has objected to the use of Form 26-AS to assess the service t....