Bhardwaj Construction and Electricals Vs Commissioner of CGST (CESTAT Delhi)
Departmental authorities having different views on taxability of service so allegation of suppression or wilful concealment not sustained
CESTAT Delhi held that there cannot be suppression or wilful concealment with intent to evade payment of duty since two departmental authorities have differed themselves on the taxability of the services under a specific category. Thus, invocation of extended period of limitation not justified.
Facts- The Department observed that the appellant is providing taxable services to Nagar Nigam, however, they neither obtained Service Tax Registration nor filed the Service Tax Returns. As the appellant failed to provide necessary information and other relevant documents, the Department proceeded on the basis of the information received from the Nagar Nigam and issued show cause notice dated 20.04.2012 demanding a sum of Rs.7,62,639/- on the services provided under the category of ‘Manpower Recruitment and Supply Agency’, ‘Management, Maintenance or Repair Service’ and ‘Erection, Commissioning or Installation Service’.
The Adjudicating Authority classified the services in respect of Work Order dated 31.08.2005 and 13.02.2007 under ‘Management, Maintenance or Repair Service’ as defined u/s. 65(64) and the remaining services under ‘Erection, Commissioning or Installation Service’. On Adjudication, the demand was confirmed for a sum of Rs.7,15,712/-along with interest and penalty. The demand of Rs.46,927/- was dropped by way of abatement in terms of Notification No.1 of 2006 dated 01.03.2006.
