TaxTMI 
TaxTMI 
2026 (6) TMI 844
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....struction of Road and Bridge. Since no Service Tax is applicable for the main contractor and the sub-contractor [the appellant], the appellant has not got themselves registered with the Service Tax Dept. Based on the Balance Sheet of the appellant, the Revenue Dept. noted that the appellant had disclosed expenditure on account of "Royalty on Mineral" amounting to Rs 1,04,00,677/-, during the period 2016-17. On such amount, the Dept. issued SCN dated 22.10.2021 alleging that the appellant is liable to pay service tax amounting to Rs. 15,60,102/- on RCM basis. The SCN was issued by invoking the extended period provisions. 3. The appellant, M/s. J. K. Engicon Private Limited, is engaged in the business of proving of „Works Contract'. During the material period, they have provided the works contract service Mainly to NE Railway, Gorakhpur and Varanasi, PWD Division and others. During verification process initiated by Central GST & CX, range - Chappra, for the FY 2016-17 and 2017-18 (April to June 2017), from the documents submitted by the appellant, The Revenue has found that the appellant has made payment on account of „"Royalty" amounting to Rs 24,40,966/- as found fro....
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....tract, the appellant purchased stone chips and sands (Minerals) from the vendors. These vendors got the license from the mining department for permission regarding assignment of right to use any natural resources. The appellant has purchased the stone chips and sands from these vendors only. 7. As per the Rule 40(10) of the Bihar Minor Mineral Concession Rules, 1972, which states that "To prevent evasion of royalty it is provided that works contractor shall purchase the minerals from lessee/permit holder and authorised dealers only and no Works Department shall receive the bill which the works contractors submit to recover cost etc. of mineral used by them in completion of the works of the Works Department under any agreement from the works contractor if the said bill is not accompanied by an affidavit in Form 'M' with particulars in Form 'N' of these Rules alongwith a photo copy of the said affidavit and particulars. It shall be the duty of the officer who receives or on whose behalf the said bill is received to send the photo copy of the Affidavit and particulars to the District Mining Officer/Assistant Mining Officer within whose jurisdiction the mine....
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....t of their Invoice value was being withheld by the State Govt Authorities, for want of Form M and Form N to be submitted by the appellants. Therefore, the appellants carried a bona fide belief that no Service Tax is payable on RCM basis for such transactions. 12. It is submitted that the Department has not conducted any independent investigation in this instant case. Further, it is evident from the Show Cause Notice itself that the Department (Anti evasion unit) has simply taken the figures available in Balance Sheet provided by the appellants and accordingly worked out the differential demand. It is well settled by the CESTAT in several cases that where the demand is based solely on balance sheet data, the extended period is not invocable and the demand is liable to be set aside on limitation alone. Also, The Department itself admitted that the appellant has provided numbers of documents as asked for time to time, when asked by the Department. Therefore, the entire information was in the knowledge of the Revenue. The appellants rely upon the following cases for arguments on limitation: I. M/s. Munna Construction v. Commissioner of C.Ex. & S.T., Jamshedpur [Final Order ....
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....ses, the License holder is also required to file periodical Returns with the State Govt. authorities towards the quantity of goods which are mined and Royalty paid. The Revenue has not brought in any evidence in this context. On this ground itself, the confirmed demand fails. 18. The entire demand is based on the entry made in the Balance Sheet showing the expenditure on account of „Royalty on Mining'. The appellants have explained the reason for such entries. As could be seen from the Rule 40(10) of the Bihar Minor Mineral Concession Rules, 1972, extracted above, Bihar State Road Development Corporation, insists that the Stones are procured from the License Holders, who are liable to pay the Royalty. Till the proof of having purchased the stones from such License Holders is not made available by the appellant by way of Form M and N, the Royalty portion is withheld and is released once the Forms are submitted. 19. I have gone through some of the sample documents submitted by the appellants, which are reproduced below: 20. From the above Statement it is seen that Rs.14,41,043/- has been withheld by RWD Works Division under the Heading of Royalty. This cannot be viewed....
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....dated 08.02.2024 in Service Tax Appeal No. 75509 of 2022 [CESTAT, Kolkata], wherein this Tribunal has observed as under: - "8. In view of the judicial pronouncement of this Tribunal, we hold that merely on the basis of Form 26-AS issued by the Income Tax Department, the demand of Service Tax is not sustainable against the appellant. ................. 11. In view of this, we hold that the impugned demand is not sustainable against the appellant on the basis of the details provided by the Income Tax Department in Form 26AS and the extended period of limitation is not invokable ." 5.2. The same view has been held by the Tribunal at Allahabad in the case of M/s.Quest Engineers & Consultant Pvt. Ltd. v. Commissioner of C.G.S.T. &C.Ex., Allahabad [2022 (58) G.S.T.L. 345 (Tri. - All.)] observing as follows: - "12. .... ....We further find that Form No. 26AS is not a statutory document for determining the taxable turnover under the Service Tax provisions. We find that Form No. 26AS is maintained on cash/ receipt basis by the Income Tax Department for the purpose of tax deducted at source, etc. being the relevant data for Income Tax. Whereas under the Ser....
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....97471.00 941962.00 1772762.00 3644174.00 1441042.00 77663.00 243620.00 36876248.00 - 1 6 A M 1 Fog J.K.Engicon Private Limited इसपद (Vika Ki Singh) (Director) (Managing Director) g Director) DIN:06464165 DIN:01206734 Document 2 HERE Excise & Reitde Degt. Gopalgan Score, oppalgan JOUR STAMP DUTY 00000 Rs=0000100 -6.9.2018 374144 INDIA · Zers.Zero-Zerc-Zerscro.Za Gokzhn [FORM-M] [See rule 40(10)} 10 BIDVSAULE R. NO. 1435 Gort. of Bihar (odia) Y MANDI Notrey In the court of.Execitive, magistrate: 1. . 1Gawas Constructa Ltd . S/o. resident of Mch/Vill Dighradubaul P.S Baikunthou District Galaqui Do hereby solemnly affirm and declare as follows :- - 2. That I am a registered Contractor of the. RCD Department of Government of Bihar, India and have taken works of construction of Mohamilton Karankadariye Secta 0-20Km Mohammadkul Chafm Real 3. That in the course of aforesaid work .I have supplied/consumed the following quantity of minerals: a 504 M2 Boulder Stone form 12/4.18 to 13.5.18 (Dates) which was purchased by me form M/S Hani Sanker Singh Mixzaten (up) (full) address of lessee/Permit ....