P & H Associates Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad)
Summary: The appeal concerned the eligibility of P & H Associates for 67% abatement of service tax under Notification No. 1/2006-ST dated 01.03.2006 for the period April 2008 to June 2012. The appellant was registered under Commercial and Industrial Construction Service (CICS), Architecture Service and Interior Decorator Service and had discharged service tax on 33% of the gross value after claiming 67% abatement.
During audit and scrutiny of ST-3 returns, the department observed that the appellant had executed works involving false ceiling, partitions, flooring, modular systems, painting, carpeting, electrical connected works, wall panelling, supply and fixing of furniture, brick works and other activities. According to the department, these activities were in the nature of completion and finishing services covered under Section 65(25b)(c) of the Finance Act, 1994 and were therefore excluded from the benefit of Notification No. 1/2006-ST. The department also alleged that the appellant had not produced sufficient site-wise or bill-wise documentary evidence establishing the value of goods and materials used in individual contracts for purposes of Notification No. 12/2003-ST.
A show cause notice dated 04.07.2013 was issued proposing recovery of differential service tax with interest and penalties. The original authority confirmed the demand, interest and penalties by order dated 04.10.2013. The appellant challenged that order before the Tribunal. By Final Order No. A/11167/2014 dated 02.07.2014, the Tribunal set aside the order and remanded the matter to the adjudicating authority to verify and scrutinize the documents concerning the appellant’s claim for benefit of Notification No. 12/2003-ST, expressly keeping all issues open.
