2026 (8) TMI 238

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....ed Commissioner (Appeals) has confirmed the demand of service tax on the services provided by the Appellant to two entities as per the chart below:     Works Contract Services     2015-16 2016-17 2017-18 Haryana State Warehousing Corporation  0 15,68,910/- 7,38,090/- Labour Supply   Shivji Singla & Sons 2,90,43,000/- 20,45,7000/- 0 Rate of Service Tax (including cesses) 14.5% 15% 15% Total Service Tax payable (WCS + Labour) 42,11,235/- 33,03,887/- 1,10,714/- Total Tax Rs. 76,25,835/-   2. Briefly stated facts of the present case are that the Appellant is engaged in works contract service for constru....

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.... properly appreciating the facts and the law. 4.1 He further submits that as regard the demand of service tax in the case of Haryana State Warehousing Corporation, the Adjudicating Authority had held that the said service is work contract service and had also given the benefit of abatement; and the Department did not file the appeal for the work undertaken for Haryana State Warehousing Corporation and the same stands finalized; and therefore, no amount of tax could be confirmed on that count. 4.2 As regards the balance amount on confirmation of tax in respect of the work undertaken for M/s Shivji Singla & Sons, the learned Counsel submits that M/s Shivji Singla & Sons had undertaken the following three work orders in respect of PWD (B....

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....s of contract entered into by M/s Shivji Singla & Sons with PWD (B&R) and contract entered into by the Appellant with M/s Shivji Singla & Sons that the said contracts were 'works contract' inclusive of material, which is also clear from the copies of the bills and certificate dated 08.05.2019 submitted by M/s Shivji Singla & Sons. He also submits that once the contract was for construction with material then it cannot be categorized under the category of 'manpower supply', and it is a settled law that once the tax is demanded under the category of 'manpower supply' then the tax even it is held to be taxable subsequently, cannot be demanded under the category of 'works contract service' as held in the following cases: • Vaatika ....

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....ation. 5. On the other hand, the learned Authorized Representative for the Respondent-Revenue reiterates the findings of the impugned order. 6. We have considered the submissions made by both the parties and perused the material on record. We find that in the present case, the demand has been raised in the Show Cause Notice under the category of 'manpower supply', whereas, the facts on the material is that the Appellant had rendered the services to Haryana State Warehousing Corporation which was a 'works contract' and the Adjudicating Authority, after considering all the facts, had held that the demand with regard to Haryana State Warehousing Corporation in respect of construction of office building was under 'works contracts' and acc....