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2014 (3) TMI 778 - AT - Service TaxCommercial or Industrial Construction Services or works contract service - vivisection of contract - Services undertaken for M/s Gujarat Industrial Development Corporation. - Bonafide belief - extended period of limitation - Held that:- it is absolutely clear that the GIDC has been set up to establish and organize industry in industrial areas and industrial estates and for establishing commercial centres. In other words, the activity undertaken by the GIDC relates to commerce or industry. The laying of pipelines undertaken by the appellant for M/s GIDC comes squarely and clearly within the definition of ‘Commercial or Industrial Construction service' as defined under Section 65(25b) of the Finance Act, 1994, and, therefore, the appellants are liable to discharge Service Tax liability on the consideration received in respect of such activities. Hon'ble High Court of Delhi in the case of G.D.Builders & Ors. vs. Union of India [2013 (11) TMI 1004 - DELHI HIGH COURT] has been held that a composite contract can be vivisected and service portion of composite contracts can be subjected to levy of Service tax. Extended period of limitation - Held that:- In none of the Returns filed by them, they have indicated that they are rendering the services to GIDC or the amount of consideration received for such services. Therefore, it has to be concluded that the appellant had suppressed the fact of rendering services to GIDC and receiving consideration for the same. Therefore, invocation of extended period of time is clearly justified. Waiver of penalty u/s 80 - Held that:- appellant has not shown any reasonable cause for failure to discharge of Service Tax liability. The appellant was well aware of the provisions of law inasmuch as they were discharging the Service tax liability in respect of the very same activity undertaken for other entities. - Demand and penalty confirmed - Decided against the assessee.
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