Tirupati Build-Con Private Limited Vs Commissioner (CESTAT Delhi)
The appeal was filed against Order-in-Original No. 09/COMMR/ST/JBP/2019 dated 17.03.2020 passed by the Commissioner, Central GST, Central Excise & Customs, Jabalpur. The impugned order confirmed late fee of Rs.28,200/-, interest of Rs.1,22,937/-, service tax of Rs.4,12,960/- on royalty paid to the State Government, CENVAT credit demand of Rs.93,59,799/- on capital goods, an amount of Rs.29,55,763/- relating to input services, and service tax of Rs.1,17,09,035/- on works contract services, along with applicable interest and penalties.
Tirupati Build-Con Private Limited was engaged in construction of roads and other civil constructions and provided taxable works contract service under Section 65B(54) of the Finance Act, 1994. The appellant also availed CENVAT credit on input services and capital goods and was liable to pay service tax under reverse charge on specified services.
The Tribunal considered four principal disputed demands: royalty charges paid for stone quarrying mines to the Government of Madhya Pradesh, CENVAT credit on capital goods, CENVAT credit relating to input services, and service tax on works contract services.
On royalty, the appellant relied upon mining agreements executed before 01.04.2016. The Tribunal followed the reasoning in S R Traders and the decision concerning Madhya Pradesh State Mining Corporation Limited, holding that the taxable event is the time when the service is provided or agreed to be provided. Since the mining-right agreements were executed before 01.04.2016, the Tribunal found no merit in confirming the service tax demand of Rs.4,12,960/- and set aside the demand.
