Case Law Details
Bhootpurva Sainik Kalyan Sangh Vs Commissioner of Central Excise & Service Tax (CESTAT Kolkata)
The CESTAT, Kolkata in M/s. Bhootpurva Sainik Kalyan Sangh v. Commissioner of Central Excise & Service Tax [Service Tax Appeal No.566 of 2011 dated May 11,2023] held that, there should be mens rea to evade payment of service tax for demand of service tax and penalty beyond period of limitation.
Facts:
M/s. Bhootpurva Sainik Kalyan Sangh (“the Appellant”) a Welfare and Rehabilitation Organization of Ex-Servicemen providing Security Agency Service mainly to Govt. departments/Public Sector Undertakings. The Appellant has taken service tax registration and paying service tax on the service charges received but did not include the wages, EPF, ESI, Bonus, Gratuity, House Rent Allowance, etc., in the taxable value for the purpose of payment of service tax.
A show cause notice demanding Service tax of Rs.6,83,312, including interest, penalty equal to the service tax under section 78 of the Finance Act 1994 was issued for the period from April 2004 to March 2006 dated January 9, 2009 (“the SCN”). Subsequently, the demand raised in the SCN was confirmed by the Adjudicating Authority vide Order-in-Original dated March 23, 2010 (“the OIO”).
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