Vijay Kumar Sharma Vs Commissioner of Central Excise and Service Tax (CESTAT Chandigarh)
Summary: The Chandigarh Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) allowed the appeal filed by M/s Vijay Kumar Sharma against Order-in-Appeal No. CHD-EXCUS-001-APP-11/2024-25 dated 17.04.2024 passed by the Commissioner (Appeals), CGST Chandigarh. The Commissioner (Appeals) had reduced the service tax demand from Rs. 5,53,451/- to Rs. 1,31,122/-, dropping Rs. 4,22,329/- pertaining to the period April 2014 to September 2014 while sustaining the balance demand for October 2014 to March 2015.
The appellant was a Works Contractor providing woodwork, construction, installation and other related services to various parties, including educational institutions and clinical establishments, both as a main contractor and as a sub-contractor. On the basis of third-party data received from the Income Tax Department for the year 2014-2015, the Department observed that the appellant had received service-related amounts according to income tax records, while no ST-3 returns had been filed and no service tax had been deposited. A show cause notice dated 28.09.2020 was consequently issued proposing recovery of service tax of Rs. 5,53,451/- and penalties under Sections 77 and 78 of the Finance Act.
The adjudicating authority confirmed the demand with interest under Sections 73 and 75 and imposed penalties under Sections 77 and 78. On appeal, the Commissioner (Appeals) dropped the demand of Rs. 4,22,329/- relating to April 2014 to September 2014 as barred by limitation, but sustained service tax of Rs. 1,31,122/- for October 2014 to March 2015 by applying the extended period of limitation.
