Singh Construction Corporation Vs Commissioner of Central Excise and Service Tax (CESTAT Kolkata)
The appellant was engaged in providing “Construction Service other than residential complex including commercial/industrial building or civil structure” and “Works Contract Service.” Upon introduction of the Voluntary Compliance Encouragement Scheme, 2013 (VCES), the appellant declared and paid Service Tax liability of ₹59,03,166. However, the competent authority rejected the declaration on the ground that the disclosure was not true and complete.
Following rejection of the VCES declaration, a show cause notice dated 18.12.2014 was issued alleging that the appellant had received gross taxable amounts of ₹31.72 crore during the period 2009-10 to 2012-13 from construction and works contract services. The notice proposed rejection of the VCES declaration, recovery of Service Tax amounting to ₹3.44 crore along with interest, appropriation of amounts already deposited under VCES, and imposition of penalties.
The adjudicating authority rejected the VCES declaration and confirmed Service Tax demand of ₹1.88 crore along with interest while dropping the balance demand. A penalty equal to the confirmed demand was imposed under Section 78 of the Finance Act, 1994. The amount of ₹59,03,166 deposited under VCES and interest of ₹7,03,070 already paid were appropriated. A separate penalty of ₹20,000 was also imposed for failure to file ST-3 returns for 2011-12 and 2012-13.
