Sheladia Rites (JV) Vs Commissioner of Central Excise & Service Tax (CESTAT Hyderabad)
The appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad arose from an order dated 30.10.2012 passed by the Commissioner (Appeals), which upheld a service tax demand of Rs. 3,85,930 along with interest under Section 75 of the Finance Act, 1994.
The appellant had entered into a contract with the National Highway Authority of India (NHAI) for providing Consulting Engineering Services relating to the widening and upgrading of roads, including construction of minor bridges, service roads, and auxiliary works in the state of Andhra Pradesh. Under the terms of the contract, NHAI was responsible for paying taxes, duties, fees, and levies on behalf of the appellant. Accordingly, NHAI paid income tax in the form of Tax Deducted at Source (TDS) on behalf of the appellant.
The department issued two show cause notices dated 08.04.2009 and 08.10.2009 for the periods April 2007 to March 2008 and April 2008 to March 2009. The notices alleged that the appellant had not included the TDS amounts paid by NHAI while determining the taxable value of services. Based on this, the department demanded service tax of Rs. 1,88,053 along with interest and proposed penalties under Sections 76 and 77 of the Finance Act, 1994.
