2026 (7) TMI 1356

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....ed. Accordingly, show-cause notice was issued demanding service tax amount of Rs.67,32,510/- along with applicable interest. The original authority on examining the records had confirmed the entire demand of Rs.67,32,510/- along with applicable interest and imposed equivalent amount of penalty under Section 78 of the Finance Act, 1994 and a penalty of Rs.10,000/- under Section 77(1)(a) for not obtaining service tax registration and a penalty of Rs.10,000/- under Section 77(2) for failure to file ST-3 returns. On appeal, the Commissioner (Appeals) considering the services rendered by the appellant allowed an abatement of 30% and benefit of Notification No.30/2012-ST and thus, redetermined the taxable value and redetermines the service tax li....

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....ent on Works Contract Services, there is nothing on record to show as to how the value was redetermined and also the quantum of service tax liability is not forthcoming from the order. Hence, requests for remanding the issue to redetermine the service tax liability. 4. Heard both sides. The issue revolves around the service tax liability to be discharged on the value of Rs.4,48,83,403/- shown as income received by the appellant through their income tax returns. It is the claim of the appellant they have undertaken Works Contract Services to the Government departments which are eligible for the benefit of the Notification No. 25/2012 dated 20.06.2012 [Sl.No.12(d) and 12(e)]. The benefit of exemption has been denied by the original authori....

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....he category of "Body Corporate" and does not fall under Government, a local authority or a governmental authority. Accordingly the appellant is not eligible for the exemption under Sl.No. 12(e) for a value of Rs. 2,44,92,225/- for the year 2016-17 and liable to pay applicable service tax. However, as it is held that the work undertaken falls under the category of works contract they are eligible for applicable abatement of 30% as the work undertaken does not fall under the original works. Also, as they have provided the service to a body corporate they are required to pay only 50% of the tax liability in terms of Not. No 30/2012-ST. After factoring all the above points the taxable value and service tax works out to Rs. 85,72,279/-. The appl....