9911796707
TMI Blog2025 (4) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... rder-in-Original No. 30/2011 dated 28.03.2011 which confirmed the demands of service tax under proviso to Section 73(1) read with Section 73(2) of the Finance Act, 1994 (ACT) and imposing penalty under Section 78 ibid, besides appropriating amounts paid towards demand. 2. The Appellant was engaged in the execution of Plumbing and Sanitary works and were registered with the department under the categories of "Erection, Commissioning and Installation services" and "Works Contract Services" w.e.f. August 2006 and 19.09.2007 respectively and were remitting Service Tax and filing statutory returns. As it appeared to the department that the Appellant was not paying appropriate service tax on the taxable value of services rendered, the department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand under the category of works contract service for the period from June 2007 to June 2009, it was submitted that the appellant was under a bonafide belief that they were not liable to pay service tax as the taxability itself was under dispute during the relevant period as the above ruling of the Hon'ble Supreme Court settled the issue only in 2015 and hence the larger period ought not to have been invoked for demand of tax and imposition of penalty in as much as the appellant had paid the entire dues before the issuance of the show cause notice. 4. The Ld. Authorized Representative Mr. Harendra Singh Pal for the Revenue affirmed the findings in the impugned order and submitted that the Appellant had suppressed material facts with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as made on the ground that works contracts services were liable to service tax w.e.f. 01.06.2007. In this connection, reliance is placed on the decision of the Hon'ble Supreme Court in CCE, Kerala vs. Larsen & Toubro Ltd. [2015 (39) S.T.R. 913 (S.C.)], wherein it was held that the provisions of Section 65(105)(g), 65(105)(zzd), 65(105)(zzh), 65(105)(zzq) and 65(105) (zzzh) were not sufficient for levying service tax on indivisible composite works contract prior to 01-06-2007. The Hon'ble Supreme Court in re Larsen & Toubro & Ors. has ruled as follows: - "24. A close look at the Finance Act, 1994 would show that the five taxable services referred to in the charging Section 65(105) would refer only to service contracts simpliciter and not t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustainable and liable to be set aside. So, ordered accordingly. 10. For the period from June 2007 to June 2009, the demand of service tax confirmed is Rs.2,33,698/-. We note that the appellant has not contested the liability under works contract for this period. The only argument brought forth by the Ld. Counsel is that they have discharged an amount of around Rs. 1,87,551/- on 03.08.2009 well before the issuance of SCN dated 19.10.2009 under this category after the visit of the departmental officers and they were under bonafide belief that Service Tax was not payable as the matter was in dispute before the Hon'ble Supreme Court and hence invocation of extended period for demand of Service Tax was not sustainable. We find that the matter b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppression of facts; or contravention of any of the provisions of this chapter or of any rule made thereunder with intent to evade payment of Service Tax by the person chargeable with the Service Tax, he is bound to disclose the reasons for formation of such belief. However, mere saying that there is contravention of provisions of Chapter V or Rules framed thereunder does not enable the Service Tax Authorities to invoke the extended period of limitation. The contravention necessarily has to be with an intent to evade payment of Service Tax. Prima facie, it appears to us on perusal of the impugned notice, that the lower authority proceeded on the basis that there had been contravention, as a result of which, some tax payable had not been paid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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