Nanu Shome & Co. Vs Commissioner of C.G.S.T. and Central Excise (CESTAT Kolkata)
M/s. Nanu Shome & Co. challenged Order-in-Original No. 60/COMM/ST/SLG/23-24 dated 28.03.2024, whereby the Commissioner, Siliguri Central Excise and C.G.S.T. Commissionerate confirmed Service Tax demand of Rs.2,86,48,709/- inclusive of cesses for the period April 2015 to March 2017, along with interest. A penalty equal to the Service Tax demand was imposed under Section 78 of the Finance Act, 1994, besides penalty of Rs.10,000/- under Section 77(1)(c) and late fee of Rs.80,000/- for non-filing of ST-3 Returns under Section 70 read with Rule 7(C) of the Service Tax Rules, 1994.
The appellant was engaged in providing works contract services relating to construction of civil structures, roads, river embankments and canals for irrigation-related works to local authorities and government bodies. The appellant stated that it was under a bona fide belief that its services were exempt from Service Tax under Notification No. 25/2012-S.T. dated 20.06.2012, as amended by Notification No. 09/2016-S.T. dated 01.03.2016, and therefore had not obtained Service Tax registration or filed Service Tax Returns.
The Department initiated proceedings on the basis of Form 26AS data received from the Income Tax Department. After seeking information by e-mail dated 16.04.2021 and letter dated 21.04.2021, the Department issued the Show Cause Notice on 28.04.2021, without waiting for the appellant’s response to the latter communication. The demand was based on the information contained in Form 26AS.
