Ashish Enterprises Vs Commissioner (CESTAT Allahabad)
Service Tax Demand Based Only on Form 26AS Cannot Sustain Extended Limitation; CESTAT Allahabad Allows Appeal After Finding No Evidence of Intent to Evade Service Tax; CESTAT Allahabad Sets Aside Service Tax Demand Because Order Went Beyond Show Cause Notice.
In Ashish Enterprises Vs Commissioner, the CESTAT Allahabad partly allowed the appeal on merits and fully on limitation, while directing the appellant to pay Service Tax only on an admitted amount of Rs.3,79,794/- received during the year 2013-14.
The appellant was engaged in providing construction services relating to commercial or industrial buildings and civil structures for Government organizations such as National Projects Construction Corporation Limited (NPCCL), U.P. Rajya Vidyut Utpadan Nigam Limited (UPRVUNL), and some private parties. The appellant was registered under “Works Contract Services”, “Erection, Commissioning Installation Services” and other taxable categories. During scrutiny of ST-3 returns, agreements and records for FY 2010-11 and 2011-12, the Department observed differences between gross payments received and billed amounts. Statements of the partner were recorded and the Department alleged suppression of facts with intent to evade Service Tax. A show cause notice dated 21.10.2014 demanded Service Tax of Rs.4,74,66,698/- for the period 01.04.2009 to 31.03.2014 along with interest and penalties.
