2026 (9) TMI 414

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....ng or Installation Service for the period from 2004-2005 to March 2006. 2. Appellant was engaged in execution of civil contracts such as construction of BSNL Exchange Buildings, Tower and Tower Foundation, building for Rubber Board, Meditation Centre for Marthoma Sabha under the categories of 'Commercial or Industrial Construction Service', 'Erection, Commissioning or Installation Service' and 'Works Contract Service'. As per the information received by the Preventive unit of Respondent, it is alleged that Appellant had not paid service tax for the service provided by them under various categories. Accordingly, investigation was commenced and show cause notice was issued on 18.12.2008 demanding service tax for the period from 200405 to 2....

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....der Construction Service or Erection, Commissioning or Installation Service prior to 1.6.2007. b) The ground that works contracts cannot be vivisected so as to segregate the service element and subjected to tax was held as not sustainable relying on various decisions cited. c) The appellant has not taken steps to register as service provider nor paid tax on the services rendered. Extended period of limitation can rightly be invoked in this case and the penalty u/s 77 and 78 was upheld. 4. Learned Chartered Accountant further submits that whether the activity involved amounts to works contract, it is evident from the finding given by the Adjudication Authority that the Appellant is eligible for abatement of 67% on the gr....

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....ng them out, such activity would be commercial and builders would be subjected to service tax. 5. Learned Chartered Accountant further submits that the demand confirmed by invoking extended period of limitation and penalties imposed by the lower authorities are also unsustainable. In this regard, Learned Chartered Accountant submits that the Show Cause Notice No. 179/08 dt. 18.12.08 was issued for the period 2004-2005 to 2007-2008 by invoking proviso to section 73(1) of the Act. The reasoning is that the appellant had not filed ST-3 returns and the fact of rendering taxable service without observing Service tax formalities was unearthed only because of the action taken by the department. The present appeal involves the taxability of comp....