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2024 (3) TMI 287 - AT - Service TaxNon-payment of service tax - Laying of pipelines under WCS/CICS - Construction of reservoirs, CNG stations and fire stations etc. - Extended period of Limitation. Work of laying pipelines under the head ‘works contract service’ done for Gas Authority of India Ltd (as the subcontractor) - HELD THAT:- The amount received prior to 01.06.2007 is not taxable. Further, the Appellant is entitled to abatement of 67% from the gross value towards material component. Further, the Appellant has demonstrated that the main contractor has adjusted the amount of service tax from the bill(s) of the Appellant – subcontractor. Thus, the Appellant is entitled to set-off of the tax deposited by the main contractor and admittedly adjusted from their bills. Also the Appellant is entitled to pay tax under the composition scheme and the same cannot be denied for having not opted for. Construction of the reservoirs, CNG stations and fire stations - HELD THAT:- The activity of construction of fire stations is of non-commercial nature and hence the same is held as exempt. So far the activity of construction of reservoirs and CNG stations is concerned, the demand is bad for the period prior to 01.06.2007. After 01.06.2007, Appellant shall be entitled to abatement of 67% of the gross value and also be entitled to the benefit of paying tax under the composition scheme - also, free supply of material, if any, from the service receiver cannot be added to the gross turnover of the Appellant, as held by the Apex Court in the case of COMMISSIONER OF SERVICE TAX ETC. VERSUS M/S. BHAYANA BUILDERS (P) LTD. ETC. [2018 (2) TMI 1325 - SUPREME COURT]. Extended period of limitation - HELD THAT:- The Appellant was registered with the department and have been filing the returns regularly and also maintains proper records of the transactions. The issue involved is wholly attributable to interpretation of the tax provisions. Accordingly, the extended period of limitation is not available to revenue. The impugned order set aside - appeal allowed.
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