Shailja Construction Vs Commissioner (CESTAT Allahabad)
The appeal before the Tribunal challenged Order-in-Appeal No. 335-ST-APPL-LKO-2025 dated 29.09.2025 passed by the Commissioner (Appeals), Customs, CGST & Central Excise, Lucknow. The appellant, a partnership concern, was engaged in providing construction services relating to roads and canals for Government departments and local authorities.
The appellant believed that the services provided by them were exempt from service tax under Serial Nos. 13(a) and 12(d) of Notification No. 25/2012-ST dated 20.06.2012. On this basis, the appellant neither obtained registration under the Finance Act, 1994 nor charged service tax in their invoices.
A show cause notice dated 28.04.2021 was issued on the basis of third-party data received from the Income Tax Department through a data-sharing protocol. The notice alleged that the appellant had rendered taxable services during Financial Years 2015-16 and 2016-17 but had not paid service tax. According to the data, the appellant received ₹3,03,21,360 during 2015-16 and ₹3,59,03,464 during 2016-17, resulting in a total alleged short payment of service tax amounting to ₹97,82,117.
During adjudication proceedings, the appellant submitted written explanations and provided supporting documents including balance sheets, Form 26AS statements and copies of contract agreements. The appellant argued that the work undertaken involved infrastructure projects such as road construction and canal-related works for public utility, which were covered under the exemption notification.
