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2023 (6) TMI 954 - CESTAT KOLKATALevy of Service Tax - Works Contract Service undertaken for various State Government approved projects - Manpower Services - Appellant was directed to produce the copy of the Certificate issued by the Chartered Accountant which has now been produced by him - levy of penalty - HELD THAT:- Admittedly the Show Cause Notice was issued towards the Manpower Services based on the Balance Sheet figures provided by the Appellant. The confirmed demand was arrived at Rs. 25,16,900/-, after the Appellant has produced copy of the Chartered Accountant’s Certificate before the Adjudicating Authority. After considering the details given therein, the Adjudicating Authority has dropped the demand to the extent of Rs. 53.60 Lakhs and confirmed the demand only on the balance Service Tax amount of Rs.25.16 Lakhs. From the Annexure B attached to this Certificate, it is seen that the total outflow of labour charges has been divided into two parts. One part pertains to the labour charges paid to contractors and the second part pertains to labour charges paid to locally hired workers by the Company. Based on such bifurcation, the Adjudicating Authority has correctly arrived at the quantum of Service Tax applicable for the Labour Charges paid to the contractors - there are no error in the order passed by the Adjudicating Authority. Accordingly, their Appeal contesting the confirmed demand of Rs.25,16,900/- is dismissed. Penalty - HELD THAT:- The Appellant has paid entire amount of Rs.25,16,900/- after the adjudication order was passed. Therefore, the penalty is being reduced to 25% of Rs.25,16,900/- subject to the Appellant to paying interest amount along with this penalty within the 30 days from the date of receipt of this order. In case the Appellant fails to pay the interest along with 25% penalty as per this Order within 30 days from the date of receipt of this order, the earlier confirmed penalty of Rs.25,16,900/- will be recoverable from the Appellant. Appeal allowed in part.
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