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TMI Blog2019 (6) TMI 1540X X X X Extracts X X X X X X X X Extracts X X X X ..... being engaged in providing services under the category of Erection, Commissioning and Installation, "Construction Services other than residential complex (including commercial/industrial building or civil structure and "Management Maintenance or Repair Services". The Appellant filed an application in terms of Section 107(1) of Chapter VI of Finance Act, 2013 under Service Tax Voluntary Compliance Encouragement Scheme, 2013 (VCES), declaring the tax dues as Rs. 5,27,916/- for the period 2010-11 to December. On scrutiny of the said declarations and that of P&L account of Income tax return and Form AS 26 for the assessment year 2008-09 to 2013-14, department formed an opinion that the appellant is liable to pay Service Tax amounting to Rs. 21 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 16-12-2013 was absolutely correct. In terms Section 107(1) of Chapter VI of Finance Act, 2013 read with Rule IV of Service Tax Voluntary Compliance Encouragement Rules, 2013. 6. It is submitted that demand vide the impugned show cause notice for the period 2008-09 to 2012-13 is on the basis of Income Tax returns and Form AS 26. The same cannot be the correct basis for adopting the value due to certain exemptions and abatements being available to the Appellant. It is impressed upon that Appellant was entitled for exemption upto the turnover of threshold exemption limit of Rs. 10 lakhs. They were also entitled for abatement of duty on services rendered for finishing services as of is white-washing and painting. They were not liable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,644/- by the adjudicating authority is not sustainable. No question of imposing penalty at all arises. Order under challenge is, accordingly, prayed to be set aside and appeal is prayed to be allowed. 7. While rebutting these arguments, it is submitted on behalf of the department that the adjudicating authority below has done a meticulous year-wise calculation about the liability of the Appellant w.e.f. the year 2008-2009 till the year 2012-2013. The nature and extent of service rendered has duly been summarised along with the amount receipt for rendering those services. It is after the said meticulous exercise that the proposal of recovery of Rs. 21,98,813/- has been considered only to the extent of Rs. 2,23,644/-. There is no appar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of single unit and of less than twelve units, the same were held to be not taxable. However, the services as defined under management maintenance for repair the provision of any abatement as impressed upon by the Appellant was denied by the adjudicating authority below, on the ground of absence of documentary evidence of cost of the material used while providing those services. Accordingly, the gross amount charged on account of these services was held liable to tax. Also 67% abatement for the services taxable under Section 65(105)(zzzh) in terms of Notification No. 1/2006-S.T., dated 1-3-2006 has been denied for want of any evidence in that respect the certificate as shown by the Appellant to have been annexed on record has also been deni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome cases, they have claimed abatement without any legal backing. But from the documents on record we observe that he Learned Commissioner has failed to appreciate the honesty of the appellant that wherever the value of services were not inclusive of material used or consumed, appellant declared the tax payable at full applicable rate (without abatement) and where the value charged was inclusive of material used and consumed in rendering the services, abatement was claimed. There is no doubt that the work orders were for up-keeping of lawns & parks with material, i.e. supply of manures (goat difng/compost khad), pesticides, insecticides, flower pots in different sizes, grass cutting machine, plastic pipes, plants etc. These are the items on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch as glazing, plastering, floor and wall tilling, installation of electrical fittings of an immovable property, service tax shall be payable on sixty per cent, of the total amount charged for the works contract;" In the light of above, the value of services provided in relation to the services of painting & white washing are to be taxed @ 60%. Period Amount and tax liability worked out by the department Amount and tax liability declared by the declarant Gross receipt Taxable amount Tax liability Gross receipt Taxable amount Tax liability 2008-09 3901532 3901532 482230 0 0 0 2009-10 1104712 1104712 113785 0 0 0 The present investigation got initiated based on Income Tax data about taxable amount for respective year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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