Sudesh Kumar Gupta Vs Commissioner of CE & CGST (CESTAT Allahabad)
Shri Sudesh Kumar Gupta, proprietor of M/s. Laxmi Electricals, Sadar Bazar, Hardoi, was engaged in supply and installation of street lights for various Municipal Corporations and municipalities. The supplied order states that a show cause notice dated 12.10.2010 was issued on the basis of information reflected in Form 26AS, showing receipts of Rs.18,07,83,649/- during financial year 2016-17. The notice alleged that no service tax had been paid and proposed service tax of Rs.2,71,17,547/- under the proviso to sub-section (1) of Section 73 of the Finance Act, 1994, invoking the extended period of limitation.
In reply, the appellant stated that he had executed work orders awarded by different Municipal Corporations for installation of street lights in municipal areas and that street lighting was one of the functions entrusted to municipalities under Article 243W of the Constitution of India. He also relied on Entry No. 12A of mega exemption Notification No. 25/2012-ST dated 20.06.2012, contending that services rendered to a local government were exempt from service tax. He further stated that VAT had been paid on goods sold to municipalities and returns had been filed. The original authority did not accept these submissions, confirmed the service tax demand of Rs.2,71,17,547/- and imposed equal penalty along with other penalties.
