Tax Management India. Com
                            Law and Practice: A Digital eBook ...
TMI - Tax Management India. Com
Case Laws Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Manuals SMS News Articles Highlights
        Home        
 
Extracts
Home List
← Previous Next →

Ajay Machine Tools Versus CCE, New Delhi

2017 (12) TMI 450 - CESTAT NEW DELHI

Non-payment of service tax - Management Maintenance or Repair Service - Erection Commissioning and Installation Service - validity of SCN - Held that: - We are not in the agreement with proposition that the appellants can be allowed to take advantage of their own action of non-cooperation with the revenue. In any case they have participated in proceedings before the Original Authority by submitting all the contract documents which resulted in the present impugned order. The objection regarding t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g supply materials along with provisions of service are liable to Service Tax only w.e.f. 1/06/2007. The law laid down by the Hon’ble Supreme Court has to be applied to various contracts which are now in dispute, wherever relevant. - The appellants claimed that most of their contracts are relating to roads. However, we note that the contracts may be either relating to electrification of roads or other incidental miscellaneous work with reference to roads. The actual scope of each of the cont .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the appellant Shri Neha Garg, AR for the respondent ORDER Per B. Ravichandran 1. The appellant is aggrieved by the order dated 25/09/2012 of Commissioner (Adjudication) Central Excise. The appellants were engaged in providing various services in pursuance to contracts entered into with the clients. The appellants executed a wide variety of contracts with reference to electrical works, maintenance and repair of DG sets, road lightening, electrical sub-station and various installation activities. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in tax entries namely Management Maintenance or Repair Service and Erection Commissioning and Installation Service. 2. The case was adjudicated by the Original Authority resulting in the impugned order. He confirmed a total tax liability of ₹ 86,27,170/-. He also imposed penalties under various sections of Finance Act, 1994. 3. The Ld. Consultant appearing for the appellant submitted on the following lines. a. The show cause notice was not specific regarding the tax liability except mentio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y made. With reference to various contracts taxed under Erection Commissioning and Installation Service, tax liability if any will arise only as Works Contract Service as these are composite contracts. Further, even with reference to MMR services certain contracts which are specifically with refrecne to non commercial buildings are to be excluded from tax liability. The original authority did not appreciate the factual or legal basis of the scope of contracts for a proper classification of their .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e, no demand can be sustained. e. The Ld. Consultant submitted that considering disputes involved in composite Works Contract prior to decision of Supreme Court of India, the appellants could not be charged with suppression etc for invoking extended period. Even for the demand presently made has gone beyond even beyond five years i.e. covering period 01/04/2005 to 30/09/2005. In any case this period can never be covered by any demand. f. It is also pleaded that the exemption available in terms o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not open to the appellant to later come with the submission that the notice should have been more specific/ categorical as to their tax liability. The contract details are available only with the appellant. The non-cooperation of the appellant in not providing the contracts has resulted in the total demand being made under two tax categories. The appellant cannot be allowed to take advantage of their own action in not cooperating with the department. 5. Regarding the merits of the case it is su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and submit documents. It is not open to them to claim bonafideness for non-payment of service tax payable therein. 6. We have heard both the sides and perused the appeal records. 7. Admittedly, in the present case the appellants have executed numerous contracts for variety of work. At the time of issuing show cause notice the details of these contracts were not made available to the revenue in spite of repeated requests. Now, the appellant is taking a plea that the show cause notice is vague and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the revenue. In any case they have participated in proceedings before the Original Authority by submitting all the contract documents which resulted in the present impugned order. The objection regarding the split up figures not available in the notice cannot be taken to a level to set aside the proceedings themselves, considering the attitude of the appellant during the proceedings. In any case due opportunity has been provided during the adjudication proceedings and the classification and quan .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

supply of materials in the contract. The Hon ble Supreme Court in the case of Larsen and Tubro Ltd. - 2015 (39) STR 913 (SC) held that the composite contracts involving supply materials along with provisions of service are liable to Service Tax only w.e.f. 1/06/2007. The law laid down by the Hon ble Supreme Court has to be applied to various contracts which are now in dispute, wherever relevant. 9. Regarding the tax liability of the appellant on MMR Service we note a total tax of ₹ 63,45, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.