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2023 (8) TMI 1321 - AT - Service TaxWorks Contract Service - Failure to discharge the service tax on the consideration received - appellant had not obtained service tax registration and had not filed ST-3 returns - N/N. 06/2015-ST dated 20.03.2015 - HELD THAT:- It is noted by the adjudicating authority that due to lack of documents, the income as shown in the P&L Statement is taken as the basis for computing the tax liability. The Department has quantified the duty by extending the benefit of abatement, wherever documents are available. Wherever there was no documentary evidence, the quantification of Service Tax was arrived at without extending the benefit of abatement. Needless to say, that in works contract services, as cost of materials also form part of the contract, the benefit of abatement has to be extended to an assessee. It is clarified in the letter dated 26.07.2022 issued by the Public Works Department that the amount shown under ‘Service Tax’ heading has to be read as TDS on Sales Tax (VAT). Such letters have been issued by other Government departments also. The impugned order does not seem to have considered all these aspects. It is also to be borne in mind that in case of works contract services rendered to Government authorities, the amount is paid to the contractor on the basis of work completion as recorded in the Measurement Book (M-book) which is maintained by the departments. The appellant could not obtain such documents due to the outbreak of the Covid-19 pandemic. They have now produced filed miscellaneous application, and produced documents. The appellant has to be given an opportunity to put their defence on the basis of the documents furnished by them. The matter is remanded to the adjudicating authority for de novo adjudication - Appeal allowed by way of remand.
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