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2016 (9) TMI 631 - CESTAT HYDERABAD

2016 (9) TMI 631 - CESTAT HYDERABAD - TMI - Invokation of extended period of limitation - Demand alongwith interest and penalty - Commercial or industrial construction service for the period upto 31-05-2007 and Works Contract service for the period 01-06-2007 to 31-03-2011 - Held that:- the appellant has contended that service provided by them has been correctly classified as WCS for the period from 01-06-2007 and that same service cannot be classified under CICS for the period prior to 01-06-20 .....

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ellants had approached the A.P. High Court with regard to dispute to nature of service provided by them. This being so, it is patently incorrect for the department to allege in the said show cause notice, wilful suppression of facts. In consequence, invocation of extended period in the show cause notice is not justifiable and the demand of tax will have to be limited to the normal period of one year computed from the date of service of notice which the appellant has claimed to be 01-11-2011. Als .....

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artly allowed by way of remand - ST/20720/2015 - Final Order No. A/30637/2016 - Dated:- 23-6-2016 - Ms. Sulekha Beevi, C.S., Member (Judicial) and Mr. Madhu Mohan Damodhar, Member(Technical) Shri P. Rama Krishna, Advocate for the Appellant Shri S. Reddy, AR for the Respondent ORDER The appellants were engaged in executing the works of construction of petrol pumps or retail outlets awarded by Indian Oil Corporation (ICOL), Hindustan Petroleum Corporation (HPCL) and M/s IBP Co.Ltd since the year 2 .....

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8/- payable on the taxable service of Commercial or industrial construction service for the period upto 31-05-2007 (ii) service tax amount of ₹ 5,78,939/- payable on taxable service of Works Contract service for the period 01-06-2007 to 31-03-2011 along with interest thereof and imposition of penalties. The notice was adjudicated and lower authority, vide Order-in-Original dated 23-10-2012 confirmed the proposals in the show cause notice. The above appeal was dismissed by the Commissioner .....

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ppellant. Aggrieved, the appellant has filed this appeal. 3. The learned Counsel for the appellant Sri. P. Rama Krishna reiterated the grounds of appeal and in particular submitted as follows. 3.1 During the impugned period 2006-07 to 2010-11 and prior to this period, the Appellant had carried out works contract services to Indian Oil Corporation (ICOL) and Hindustan Petroleum Corporation (HPCL) in the nature of " routine civil/mechanical/ pipeline/ electrical/ painting/ vision-2000 work in .....

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to 01-06-2007, on the activities of the Appellant. 3.3 There was an exchange of correspondence between the appellant and the department in respect of new levy of service tax. In fact, the appellant through their society challenged the new levy by way of filing writ petition No. 28470/2008 before the Hon'ble High Court of Andhra Pradesh and the said writ petition is still pending. The same fact also conveyed to the Assistant Commissioner of Service Tax, Hyderabad vice his letter dated 29-09-2 .....

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tax from 2006-07 to 2010-11. 3.5 Hence, the notice is barred by limitation. 3.6 Show cause notice completely ignored the letter of the appellant dated 29-09-2008, wherein the appellant submitted the details of turnover. During the year 2005-2006 the appellant disclosed the turnover as ₹ 11,59,292/-. Thus, the abated value would be worked out under notification No. 1/2006-ST, dated 01-03-2006 as 33% of gross value ie. ₹ 3,82,566/- The said turnover for the year 2005-2006 is much belo .....

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ld limit of ₹ 10.0 lakhs under notification No.6/2005-ST. The demand notice ignored this fact and denied the benefit. 3.9 Prior to 01-06-2007, there was no service tax payable on works contract services. This fact has been completely ignored by the demand notice. 3.10 After rectification of the above mistakes apparent on demand notice, if it is re-quantified, the demand would only be around ₹ 3,34,702/- and not ₹ 6,87,247/- as alleged in the notice. 4. The learned AR Sri. S. Re .....

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ellant contends to have received it on 01-11-2011. The department has not adduced any evidence to establish the contrary. The notice seeks to demand ₹ 1,08,308/- on Commercial & Industrial Services (CICS) for the period upto 31-05-2007 and amount of ₹ 5,78,939/ on Works Contract Services (WCS) for the period 01-06-2007 to 2010 -2011 invoking extended period of limitation for suppressing actual value of services with intention to evade payment of service tax. This is the notice th .....

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