Synergy Engineers Group Pvt. Ltd. Vs Principal Commissioner (CESTAT Delhi)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) considered two appeals arising from the order dated December 31, 2015 passed by the Principal Commissioner, Customs, Central Excise and Service Tax, Bhopal. The assessee challenged the confirmation of service tax demands of Rs. 44,42,823/- and Rs. 1,05,625/- with interest, while the Department challenged the dropping of the demand for the extended period of limitation under the proviso to Section 73(1) of the Finance Act, 1994.
The assessee was engaged in providing ‘consulting engineer’ services under Section 65(31) of the Finance Act, taxable under Section 65(105)(g). It had entered into an agreement dated February 14, 2010 with M/s. Lion Engineering Consultant, under which it functioned as a sub-consultant for consultancy services provided to the Government of Madhya Pradesh. The dispute related both to services rendered by the assessee as a main consultant and those rendered as a sub-consultant.
The Principal Commissioner confirmed the service tax demand of Rs. 44,42,823/- on services provided by the assessee as a sub-consultant and Rs. 1,05,625/- on services provided as a main consultant. However, the Commissioner confined the demand to the normal period of limitation and declined to invoke the extended limitation period.
