Saha Civil Construction Private Limited Vs Commissioner of C.G.S.T. And Central Excise (CESTAT Kolkata)
Summary: The Customs, Excise and Service Tax Appellate Tribunal, Kolkata considered a Service Tax dispute involving demands under site formation and clearance, excavation and earth moving and demolition service, works contract service, manpower recruitment or supply agency service, and reverse charge mechanism.
The appellant, M/s. Saha Civil Construction Private Limited, had been subjected to scrutiny of its audited Balance Sheet, Form 26AS, P&L Account, ST-3 Returns, Ledger and Contracts. During the investigation, the appellant deposited Rs.4,34,786/-. A Show Cause Notice dated 19.04.2017 demanded total Service Tax of Rs.2,49,84,491/- for the period from 31.03.2012 to 2014-15, besides interest and penalties. The adjudicating authority confirmed the entire demand.
On the largest component, namely Rs.2,15,03,809/- under site formation and clearance, excavation and earth moving and demolition service, the appellant submitted that the work concerned evacuation of settled ash from an ash pond and had been undertaken as a sub-contractor. Relying on M/s. Novel Engineering & Technical Works Ltd., the appellant contended that such activity was not leviable to Service Tax. The Tribunal accepted the contention. It relied on the earlier decision holding that transportation and dumping of ash forming an essential part of the production process was not a service activity, referring also to Marshall Corporation Ltd. The demand under this category, with interest, was therefore held unsustainable and set aside.
