Maharani Construction Vs Commissioner of CGST & Central Excise (CESTAT Kolkata)
Summary: The present appeal was filed by M/s Maharani Construction against the order of the Commissioner (Appeals), CGST & CX, Ranchi, upholding the adjudication order confirming service tax demand, including Cess, of Rs. 21,87,931/- along with interest and equal penalty. Penalties were also imposed under Sections 77(1)(a), (b) and (c) of the Finance Act, 1994.
The demand related to services rendered to four organisations: District Welfare Office, Dumka of Rs.1,20,000/-, District Development Office, Dumka of Rs.2,87,971/-, Zila Parishad of Rs.3,56,224/- and World Vision India of Rs.14,23,744/-. The Department’s proceedings were based substantially on information available in Form 26AS of the Income Tax Department.
The appellant challenged the demand principally on limitation. It submitted that the figures reflected in Form 26AS were also included in its Profit/Loss Account and Balance Sheet, which were public documents, and that there was no suppression of facts or positive evidence of mala fide intention or mens rea to evade service tax. Reliance was placed on Kush Constructions Vs CGST NACIN, Luit Developers Private Limited Vs Commissioner of CGST & Central Excise and M/s Piyush Sharma Vs Commissioner of CGST & CX, Patna-I. The appellant contended that the Department could not treat the entire amount appearing in Form 26AS as consideration for taxable services without examining the nature of the receipts.
