TaxTMI 
TaxTMI 
2026 (9) TMI 1920
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....ainly to Dakshin Dinajpur Highway Division PW Road and office of the Executive Engineer, Malda Highway Division. 2.1. The department has alleged that the appellant has short-paid service tax for Financial Years 201516 and 2016-17, based on the turnover reflected in the Form 26AS records. Such differences have been treated as suppression of taxable value, leading to invocation of the extended period under Section 73(1) of the Finance Act, 1994, along with demand of interest under Section 75 and penalty under Section 78. 2.2. On the basis of the said allegations, a SCN has been issued demanding service tax. After due process of adjudication, the Ld. Adjudicating authority has dropped some of the demands and confirmed the demand of service tax of Rs. 54,91,765/- including Cess, and demanded interest on the tax amount confirmed under section 75 of the Finance Act, 1994, as well as imposed penalty of Rs. 54,91,765/- under section 78 of the Finance Act, 1994. He also imposed a penalty of Rs. 10,000/- under section 77 of the Finance Act, 1994. On appeal, the Ld. Commissioner (Appeals) upheld the demands. 2.3. Aggrieved against the confirmation of the demands of service tax along ....
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.... no dispute that the service provided by them fall under the definition of works contract. Further, all the contracts were exempted under notification no. 25/2012 dated 20.06.2012. The appellant were engaged in providing of works contract service to the Dakshin Dinajpur Highway Division PW Road and office of the Executive Engineer, Malda Highway Division, which is under the Government of West Bengal. Further, in the order itself, the Ld. Adjudicating officer has acknowledged that the service are being provided to 'Government Authority' as defined under the service tax law under 2(s) of Notification No. 25/2012-ST dated 20.06.2012. Accordingly, the Appellant submits that the demands of service tax confirmed in the impugned order are legally not sustainable. 5. The Ld. A.R. reiterated the findings in the impugned order. 6. Heard both sides and perused the appeal documents. 7. We find that the Appellant has contested the demands confirmed in the impugned order on merits as well as on limitation, Regarding the ground of limitation raised by the Appellant, we find that the Show Cause Notice in this case has been issued on the basis of the figures available in the Form 26AS, Inc....
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....ended period of limitation is not sustainable. 8. Regarding merits of the case, we find that the services rendered by them include materials and hence appropriately classifiable under the category of 'Works Contract' service. They have rendered 'Works Contract service' in connection with construction of Roads which are exempted under Notification No. 25/2012 dated 20.06.2012, 8.1. We have perused the Work Orders on which service tax has been demanded in the impugned order. A summary of the taxable value on which service tax demand has been confirmed in the impugned order, is given below: Year Work Order No. Nature of work Amount Value after abatement of 30% Demand of Service Tax (14.5% / 15%) 2015-16 Memo No. 2037/W- 45 Date 05.02.2015 Widening/ strengthening for providing double lane footpath on either side of English Bazar Kotowali Road in the District of Malda 5,25,00,001 3,67,50,001 53,28,750 2016-17 Memo No. 2037/W- 45 Date 05.02.2015 Widening/ strengthening for providing double lane footpath on either side of English Bazar Kotowali Road in the District of Malda 15,52,519 10,86,763 1,63,014 Tota....
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....nce of traffic that mostly has an improved surface for use by vehicles (motorized and non-motorized) and pedestrians. The primary features of roads include lanes, sidewalks (pavement), roadways (carriage ways), medians, shoulders, verges, bike paths (cycle paths), and shared-use paths. " [Source: www.wikipedia.org] "An open, generally public way for the pas sage of vehicles, people, and animals." Source: www.thefreedictionary.com] 8.6. The expression "road" has not been restrictively defined under the service tax law. In its ordinary and legal meaning, a public road encompasses its integral components and facilities meant for movement of the public, including pedestrian pathways/footpaths. A footpath forming part of a public road and intended for pedestrian movement cannot be artificially segregated from the road merely for denying the exemption. The work done by the Appellant has been described in the Work Orders as "Widening and Strengthening for providing double lane (7.00 m), slow lane (2.50 m), footpath (1.50 m) on either side of English Bazar-Kotwali Road from 0.00 to 2.00 Kmp & Widening and Strengthening from 2.00 to 8.20 Kmp i....