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TMI Blog2023 (5) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... e service provider, is liable to pay 50% of the tax that is an amount of Rs.9,56,747.00/-, while the balance 50% is required to be paid by the service receiver. M/s Dipak Paul have discharged service tax liability along with interest and have paid an amount of Rs.10,21,525/- to the department, as share of their liability. 2. Vide show cause notice issued in the matter, the appellant have now been called upon to pay the balance service tax amounting to Rs.8,91,969/- under Section 73(1) of the Finance Act. Commissioner (Appeals) vide his order has fastened the balance liability on the appellants, on the plea that upon completion of the construction of the building M/s THCB had handed over the building to the appellants who upon getting possession of the said building released all funds due as per contract to THCB, towards the construction of their office building and the fact that the appellants are using the said office building, evidence that the appellant fell into the bracket of being the end user/beneficiary/ultimate recipient of the service, and therefore are required to pay the balance 50% of service tax as recipient of service in terms of Notification no. 30/2012 ST. dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der RCM in relation to service rendered by M/s Dipak Paul , no liability can accrue to the appellants, for want of receipt of any service by them from M/s Dipak Paul directly. 7.1 Agenda item number 06 of the Board Note - 06/15/2010 dated 06.10.2010 and 07 Board Note No 07.08.2011 dated 30/03/2011 of TSCBL makes it evident that the contractors as far as the construction of the building is concerned were THCB. It is observed that all correspondence by TSCBL (the appellant) is with THCB and not with M/s Dipak Paul. For greater appreciation the two agenda items are reproduced hereunder : TRIPURA STATE COOPERATIVE BANK LTD HEAD OFFICE : AGARTALA. AGENDA NO. -06 BOARD NOTE NO.-06/15/2010. BOARD OF DIRECTORS DATED:- 06.10.2010 RE :- Construction of Multistoreled building on Bank's own land at Post Office Chowmuhani, Agartala. Tripura State Cooperative Bank Ltd owns and possesses a plot of land measuring 0.644 acres at Post Office Chowmuhani Which is located at the backside of Congress Bhavan, Agartala. The bank has taken a policy decision to construct its multistoried building on the said plot of land. The land is at a prime location within the Agartala Municipal Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... & Estimate as decided after discussion and to submit the same to the bank. The revised Plan & Estimate of the proposed building of the bank is placed to the Board of Directors of the bank for examination and according administrative approval and sanction of the required expenditure to THCB for taking further course of action. MANAGING DIRECTOR. The Board of Director of the bank in its 15th meeting held on 11.10.2010 approved the revised plan & Estimate of the proposed building of the bank a prepared by the Tripura Housing & Construction Board with a project cost of Rs. 4.56 crores. Accordingly, Bank has accorded administrative approval and sanction of the expenditure of Rs. 4.56 crores to the CEO, THCB vide bank's letter no. C-2/807(2)/TSCB/Part-111/30893/10 dt. 11.10.2010. Subsequently, Bank has submitted the revised plan of the proposed building of the bank to the Chairperson, Agartala Municipal Council vide bank's letter no. C-2/DEV/GEN/AMC/92 dt. 03.11.2010 for approval. The Managing Director discussed with the CEO, THCB for the construction works of the bank's building on 28.12.2010. The CEO, THCB assured that they are likely to float the tenders for the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. MANAGING DIRECTOR ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- TRIPURA STATE COOPERATIVE BANK LTD HEAD OFFICE : AGARTALA. AGENDA NO. -7 BOARD NOTE NO. -7/18/2011 DATED:- 30.03.2011 BOARD OF DIRECTORS RE:- Construction of Multistoried Building on bank's own land at Post Office Chowmuhani Agartal Vis-à-vis the disposal of bank's land at Mohanpur. Tripura State Cooperative Bank Ltd Owns and possesses at plot of land measuring 0.644 acres at Post Office Chowmuhani which is located at the back side of Congress Bhavan, Agartala. The bank has taken a policy decision to construct its Multistoried building on the said plot of land. The land is at a prime location within the Agartala Municipal Corporation area. The Board the directors of the Bank desired that a building with all modern outlook and maximum utilization of the land can be designed and constructed, if necessary, in phases. The Board of Directors of the bank in its 7th meeting held on 14.05.2009 decided to explore the feasibility of such construction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; Date- 13/05/2011 To Sri Dipak Paul S/O - Sri Nityananda Paul 140 Motor Stand Road Agartala, West Tripura Subject : Work order. Name of Work :- Construction of Multi-storied Building of Tripura State Co-Operative Bank at Agartala. DNIT No. 15/THCB/PD-I/2010-11. Sir, Your Tender for the above mentioned work has been accepted on behalf of the Tripura Housing and Construction Board @ 10.00% (Ten percent) only above the estimated cost put to tender i.e. Rs.2,73,27,732.00 (Rupees Two Crores Seventy Three Lacs Twenty Seven Thousand Seven Hundred & Thirty Two) only and the tendered amount comes to Rs.3,00,60,505.00 (Rupees Three Crores Sixty Thousand Five Hundred & Five) only. No deviation beyond the permissible limit will be entertained without approval of Competent Authority. Now you are requested to attend this office within 7(seven) days from the date of issue of this work ordr to complete the formal agreement. You are also requested to start the swork at once as per direction of Assistant Executive Officer, Sub-Division No.II under this Division Deo(W), Tripura Housing and Construction Board, Agartala. Please note that the time allowed fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puted that M/s Dipak Paul has been engaged at the behest of THCB. There is no contract evidencing engagement of Dipak Paul by TSCBL. 9. As per section 68(1) the Service Tax liability dwells upon the person, providing the taxable service. However, in terms of Notification No. 30/ 12-ST, dated 30.6.12, this liability is divided equally between the service provider and the service recipient - each sharing 50% tax payable. The following facts distinctly emerge in the matter : 1. TSCBL awards contract for construction of a multi-storeyed building to THCB for a consideration of Rs.45600000. The service recipient is TSCBL from THCB. 2. THCB engages M/s Dipak Paul, for the construction of the said building for a consideration of Rs.4,0616850.00.- herein the service provider is M/s Dipak Paul, while the service recipient is THCB 3. M/s Dipak Paul upon completion of the building hands it over to THCB.- thus M/s Dipak Paul provider of works contract service to THCB. 4. TSCBL releases entire funds and takes over the possession of the building from THCB. 10. Under the circumstances no liability by way of RCM is accruable upon TSCBL, the appellant with regard to the aforesaid services ..... X X X X Extracts X X X X X X X X Extracts X X X X
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