TaxTMI 
TaxTMI 
2026 (9) TMI 191
X X X X Extracts X X X X
X X X X Extracts X X X X
....,87,725/-, from the party, under Section 75 of the Finance Act, 1994; 3. I impose a penalty of Rs. 68,772/-, upon the party, under Section 76 of the Act for not paying the above service tax (including Cesses) of 6,87,725/-. 4. For their failure to obtain service tax registration, I impose a penalty of Rs. 10,000/- (Rupees Ten Thousand only) under the provisions of Section 77 (1) (a) of the Act, on M/s Bahadur and Company, Vill. & Post - Belhari, Audihar, Ghazipur - 233221 (U.P.). 5. I impose a further penalty of Rs. 10,000/- (Rupees Ten Thousand only) under Section 77 (2) of the Finance Act, 1994 on the party for their failure to file ST-3 Returns for the relevant period. 6. I also confirm the demand of Service Tax (including Cesses) of Rs. 22,500/- (Rs. Twenty Two Thousand Five Hundred only) upon the party i.e. M/s Bahadur and Company, Vill. & Post - Belhari, Audihar, Ghazipur - 233221 (U.P.) and order for the recovery of same from the party. 7. I impose a penalty of Rs. 2,250/-, upon the party, under Section 76 of the Act for not paying the above service tax (including Cesses) of Rs. 22,500/- 1.2 A corrigendum dated 05.11.2020 was i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ract to various authorities and received consideration for the services provided. For the services provided appellant did not discharged their Service Tax liabilities as required under the Finance Act, 1994 (hereinafter referred to as the "Act") read with Service Tax Rules, 1994 (hereinafter referred to as the "Rules" and has also not got themselves registered with the Central Excise & Service Tax Department in terms of Section 69 of the Act read with Rule 4 of the Rules. 2.2 Consequent upon examination of certain information and records, it appeared that the party was engaged in providing the taxable services of Work Contracts / Construction Services but not discharging their service tax liabilities. Accordingly, a Demand cum show cause notice bearing No. 15/Commr/Alld./2015 dt. 21-04-2015, was issued to appellant vide C.No. VI(ST) Dem (12)-ADJ-42/2015/4304 dated 21-042015 for short/ non payment of service tax on 'Works Contract Service' rendered by them. The show cause notice was for Rs.1,76,64,581-00 covering the period from 2009-10 (October, 2009) to 2013-14. 2.3 On scrutiny of the details provided by the appellant for the subsequent period, it transpired that the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....stration making themselves liable for penal action under Section 77 of the Act. Further, it was apparent that the party did not submit any half yearly return to the department and thereby, contravened the provisions of Section 70 of the Act read with rule 7 of the Rules. Hence, liable for imposition of penalty under Section 77 of the Act. 2.6 As per Section 68 of the Act read with Rule 6 of the Rules appellant was required to pay Service Tax on the value of taxable Services received during any calendar quarter/ month, to the credit of the Central Government by 5th (6th in case of e-payment) of the month immediately following the said quarter/month. As they have not paid service tax value of taxable services provided during the period of dispute in violation of Section 68 of the Act read with Rule 6 of the Rules, the same was recoverable under Section 73(1) of the Act along with interest under Section 75 of the Act. They are also liable for penalty under Section 76 of the Act for contravention of the provisions of Section 68 of the Act, read with rule 4 of the Rules. 2.7 A demand cum show cause notice dated 19.04.2016 was issued to the appellant asking them to show cause as to....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sued to the appellant asking them to show cause as to why: (a) Service tax amounting to Rs. 2,26,90,205/- (Rs. Two Crores Twenty Six Lakh Ninety Thousand Two Hundred and Five only) (including applicable cesses) should not be demanded and recovered from them under the provisions of Section 73(1) of the Finance Act, 1994, as amended along with interest as applicable under Section 75 of the Act, ibid. (b) Penalty should not be imposed upon them under Section 77(1)(a) of Chapter V of the Finance Act, 1994 for contravention of Section 69 of the Act read with Rule 4 of the Rules for default in taking registration. (c) Penalty should not be imposed upon them under Section 77(2) of Chapter V of the Finance Act, 1994 for contravention of Section 70 of the Act read with Rule 7 of the Rules for each default, for not filing the statutory returns (ST-3) within due time. (d) Penalty should not be imposed upon them under Section 76 of Chapter V of the Finance Act, 1994 for not paying service tax in accordance with the provisions of Section 68 of the Act read with Rule 6 of the Rules. 2.10 All the three demand cum show cause notices have been adjudicated by t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to examine the taxability of amount received by the party from the Executive Engineer, Irrigation Department, Varanasi. I find that the party has received Rs. 2,07,30,724/-, during the period from 201415 to 2017-18 (upto June, 2017), in the following manner: 2014-15 2015-16 2016-17 2017-18 (Upto June, 17) TOTAL EE IRRIGATION DEPARTMENT VARANASI 51,81,151/- 39,24,272/- 88,35,117/- 27,90,184/- 2,07,30,724/- 5.9.1 In this regard, the party have submitted that they have provided the work contract service amounting to Rs 51,81,151.00 for repairing of Canal during FY 2014-2015, work contract service amounting to Rs 39,24,272.00 for construction of Ghat at left bank of River Karamnasa and development of destination tourism at village Dewal at District Ghazipur during FY 2015-2016 and work contract service amounting to Rs 1,16,25,301.00 for construction of Baba Keena Ram Ghat at left bank of River Karamnasa and development of destination tourism at village Dewal at District Ghazipur during FY 2016-17 & FY 2017-18 (Up to June 2017). The party claimed exemption as provided in point No 12 (d) and (a) of Notification no 25/2012-ST dated 20.0....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958); (c) a structure meant predominantly for use as: (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; or (d) canal, dam or other irrigation works; (e) pipeline, conduit or plant for: (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal; or (f) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in the Explanation 1 to clause (44) of section 65 B of the said Act; In respect of party's claim of exemption for the year 201415, in the above category, I find that the party has admitted to have received 51,81,151/- from the Executive Engineer, Irrigation Department, Varanasi, for repairing of canal, but they have not produced any bill, contract, agreement or work order, in support of their claim of exemption. Hence, I find that the claimed exemption cannot be granted to party. As regards party's claim in respect of receipt for the year 2015-16, 2016-17 and 2017-18 (upto J....
X X X X Extracts X X X X
X X X X Extracts X X X X
....016-17, as detailed below: Name of Employer Work order No Amount Received/Gross Turnover F.Y. 2016-17 F.Y. 2017-18 (Up to June 2017) Total Bharat Coking Coal Limited Agreement No 01 of 2014-15 13,01,888.00 - 13,01,888.00 The party further, submitted that the work is done based on the agreement executed between them and Bharat Coking Coal Limited following Work Order prior to 01.03.2015: For the year 2014-15: Work Order No Description of work BCCL/CED/GM(C) WO-47 2013-14/2021 DT 28.03.14 Thorough repairing of 827 Nos. residential quarters on deep seated land in WJ area, Moonidih, BCCL (Half Part) For the year 2015-16: Work Order No Description of work BCCL/CED/GM(C) WO-47 2013-14/2021 DT 28.03.14 Thorough repairing of 827 Nos, residential quarters on deep seated land in WJ area, Moonidih, BCCL (Half Part) For the year 2016-17: Name of Employer Work order No Amount Received/Gross Turnover F.Y. 2016-17 F.Y. 2017-18 (Up to June 2017) Total Bharat Coking Coal Limited Agreement No 01 of 2014-15 13,01,888.00 - 13,01,888.00 The party also submitted that ser....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 66-D of Finance Act, 1994. But the same has been listed under category of declared service under subsection (b) and (h) of section 66E of Finance Act, 1994. Section 65B(54) read as follows: "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 contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any movable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property; The determination of value of service portion involved in the execution of a works contract are contained in Rule 2A of Service Tax (Determination of Value) Rules, 2006. Rule 2A(ii) Where the value has not been determined under clause (i), the assessee is liable to pay tax on the service portion involved in the execution of the works contract and shall determine the service tax payable in the following manner, namely - (A) in case of works contracts entered into for execution of original works, service tax sha....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... above work order/agreement/letter of acceptance, it is evident that the party has provided the work contract service to M/s Bharat Coking Coal Limited and the party being specified person i.e. Proprietorship/partnership concern and the service receiver too being specified person i.e. a Corporate body, the party is liable to pay service tax on the 50% of the gross amount charged and on the rest 50% amount, service receiver i.e. M/s Bharat Coking Coal Limited is liable to pay service tax, in terms of Entry No. 9 in Notification No. 30/2012-ST, dated 20-06-2012. Further, since the work is inclusive of the material and for maintenance/repair/reconditioning or restoration, the party is entitled for abatement of 30%, thus they have to pay tax on the 70% of the amount on which they were liable to pay tax, as provided in clause (ii) of rule 2A of Service Tax (Determination of Value) Rules, 2006. Further, the contention of the party that service tax on above work has already been paid by Bharat Coking and Coal Limited under reverse charge mechanism. As tax is already paid, they are not liable to pay service tax again on it, is not correct because from the perusal of the certificated dated ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r, deduct an amount equal to-... .". Based on reading of above provisions of section 194C of Income Tax Act' 1961, it is evident that tax is deducted under section 194C for the payment related to carrying out any work. Moreover, in respect of other receipts also the same has been found to be in lieu of providing work contract service. Hence, I come to conclusion that the party has received the above amount of Rs. 1,50,000/- for providing work contract service and has not discharged the due service tax liability. Further, in absence of any bill/work order/agreement/contract no abatement/reverse charge could be granted. Accordingly, the service tax (including Cesses) liability is calculated as Rs. 22,500/-, as under: Period Gross amount received by the party (In Rs.) Amount on which the party is liable to pay Service Tax Rate of Service Tax (In %) Service Tax (including Cesses) payable (In Rs.) 2014-15 0 0 0 0 2015-16 0 0 0 0 2016-17 1,50,000/- 1,50,000/- 15 22,500/- 2017-18 (Upto June, 17) 0 0 0 0 TOTAL 1,50,000/- 1,50,000/- 0 22,500/- Thus, I find that in respect of recei....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ocuments produced in respect of receipts from EE Irrigation Department to establish claim to exemption 5181151 569945 2 2014- 2016 Services Provided to Bharat Coking Coal are exempt from payment of service tax. 14743773 687725 3 2016-17 No documents produced in respect of receipts from Siddheevinayak to establish claim to exemption 150000 22500 Total 20074924 1280170 4.4 Appellant do not dispute the facts in respect of receipts from M/s Sidheevinayak Infravillage Private Limited, and fairly conceded that they do not have any documents to establish that these receipts were towards provision of exempted services. Taking note of the above submission we uphold the demand made on this account. 4.5 In respect of the demand made for the period 2014-15 in respect of Receipt of Rs 51,18,151/- from Executive Engineer Irrigation Department Varanasi, we observe that demand has been confirmed against the said receipts for the reason that appellant at the time of adjudication did not able to produce contract or agreements to establish the exempted nature of the services provided. Appellant in his submissions made before us in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....laimed by the appellant in respect of the services of repair of houses for the said service recipient would not qualify for exemption as claimed by the appellant. We also observe that appellant had before the adjudicating authority produced a certificate from the said service recipient, in respect of payment of service tax in respect of these services on reverse charge basis. As per Notification No 30/2012-ST in respect of he work contract services service tax to be paid by the service recipient on reverse charge basis is 50% and 50% of the Service Tax is to be paid by the service provider. Impugned order clearly and emphatically records that the service recipient has paid 50% of the Service tax due from him in respect of the services received from the appellant and remaining 50% is to be borne by the service provider. When the service recipient did not find that the services received by him were exempt from payment of service tax, for the reason that it is was having the character of Government Authority, we do not find any merits in the submissions made by the appellant in this regard. 4.9 In respect of the penalties imposed under Section 76 and 77 of the Finance Act, 1994 we ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....riminal liability, the intention of the Legislature is that the penalty should serve as a deterrent. The creation of an offence by Statute proceeds on the assumption that society suffers injury by and the act or omission of the defaulter and that a deterrent must be imposed to discourage the repetition of the offence. In the case of a proceeding under Section 271(1)(a), however, it seems that the intention of the legislature is to emphasise the fact of loss of Revenue and to provide a remedy for such loss, although no doubt an element of coercion is present in the penalty. In this connection the terms in which the penalty falls to be measured is significant. Unless there is something in the language of the statute indicating the need to establish the element of mens rea it is generally sufficient to prove that a default in complying with the statute has occurred. In our opinion, there is nothing in Section 271(1)(a) which requires that mens rea must be proved before penalty can be levied under that provision. We are supported by the statement in Corpus Juris Secundum Volume 85, page 580, Paragraph 1023 : "A penalty imposed for a tax delinquency is a civil obligation, remed....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ड, वाराणसी। पà¥à¤°à¥‡à¤·à¤¿à¤¤ मेहबहादà¥à¤° à¤à¤£à¥à¤¡ कमà¥à¤ªà¤¨à¥€ सनà¥à¤¦à¤°à¥à¤ :- इस कारà¥à¤¯à¤¾à¤²à¤¯ के पतà¥à¤°à¤¾à¤‚क 1651६६६ पा 7 2 4.3.14 महोदय, Had अनà¥à¤¯ पतà¥à¤° के पà¥à¤°à¤¤à¤¿à¤ªà¤¾à¤²à¤¨ में आपके दà¥à¤µà¤¾à¤°à¤¾ दिनांक 4. 3.14 का Const Af Frendoctor Rocetamg Halion ) E.e. the Dild arnagar fly digpass Road ocu m690 4 996 का कारà¥à¤¯ करने हेतॠअनà¥à¤¬à¤¨à¥à¤§ पर अधोहसà¥à¤¤à¤¾à¤•à¥à¤·à¤°à¤•à¤°à¥à¤¤à¤¾ के समकà¥à¤· हसà¥à¤¤à¤¾à¤•à¥....
X X X X Extracts X X X X
X X X X Extracts X X X X
....¤•à¥à¤¤à¤¾à¤¨à¥à¤¸à¤¾à¤°à¥¤ MEUchel à¤à¤µà¤¦à¥€à¤¯ 9 PoulosTry Contract कोविशासी अà¤à¤¿à¤¯à¤¨à¥à¤¤à¤¾ im 1 पतà¥à¤°à¤¾à¤‚क :- 180/अ०अ०/अनà¥à¥¦à¥§à¥©-१६) तदà¥à¤¦à¤¿à¤¨à¤¾à¤‚क 4.3-14 पà¥à¤°à¤¤à¤¿à¤²à¤¿à¤ªà¤¿ सहायक अà¤à¤¿à¤¯à¤¨à¥à¤¤à¤¾(2/ forane' को अनà¥à¤¬à¤¨à¥à¤§ संखà¥à¤¯à¤¾ 17 88/1314 की पà¥à¤°à¤¤à¤¿à¤²à¤¿à¤ªà¤¿ सहित पà¥à¤°à¥‡à¤·à¤¿à¤¤ है। संलगà¥à¤¨- उपरोकà¥à¤¤à¤¾à¤¨à¥à¤¸à¤¾à¤°à¥¤ grouा D दासी अà¤à¤¿à¤¯à¤¨à¥à¤¤à¤¾ Contractor Form of Acceptance of tender Executive Engineer From Scentivre Engineer. Irrigation Constr....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... अधोहसà¥à¤¤à¤¾à¤•à¥à¤·à¤°à¤•à¤°à¥à¤¤à¤¾ के समकà¥à¤· हसà¥à¤¤à¤¾à¤•à¥à¤·à¤° कर दिये हैं। इस कारà¥à¤¯ को सà¥à¤šà¤¾à¤°à¥‚ रूप से पूरà¥à¤£ करने की अवधि माह है। अतः आपको आदेश दिया जाता है कि आप यह कारà¥à¤¯ दिनांक 23-015 को शà¥à¤°à¥‚ कर दें व दिनांक 30-3015 तक कारà¥à¤¯ पूरà¥à¤£ करा दें। इस कारà¥à¤¯ को समà¥à¤ªà¤¾à¤¦à¤¿à¤¤ कराà¤....
X X X X Extracts X X X X
X X X X Extracts X X X X
....st your General security/ earnest money . time of signing on the bond papers THEPour Your faithfully 86 Contentor Executivre Engineer, Irrigation Construction Divisie 0 Copy to the following The. Copy to bond clerk Sri Baliram . ! ! Il 50 Executive Engineer 2 AE !! 1 5 A #31365451 Av de. 458185:40 121912 : 88332018. $1,00 28de vo 8000 /dt 1-11-06-14 - 11-06-12 1.3 1. A - 08-08-14:08-08-14; S.BI Maior Branch Wy 7420. 1272848= S,BI Main Brunch w 10 1 A 7 4 157 03/15 ABONO 47/CE/14-15 19 /07/14 Apto 25/88/13-14 05/14 Aprile 23/88/13-14 A 3-2014-15 DET- M/s Bahadur and company. M/S Company. इमाईं निनाजी अकà¥à¤²à¤¾à¤¬à¤¾à¤¦à¤¾à¤² है- वाराणसी सिंचाई निरà¥à¤®à¤¾à¤£ खणà¥à¤¡ अधिशासी - 03/ 2/10 63 58 Acesso 12559042020 13 3 E दिनांक 4.3-14 M। पत....