Asian Housing & Constructions Pvt. Ltd. Vs Commissioner of CGST & Central Excise (CESTAT Kolkata)
The appeal was filed against an order confirming service tax demand, recovery of excess Cenvat credit, interest, and penalties under the Finance Act, 1994. The dispute arose from construction services provided by the appellant under an agreement with the Government of Meghalaya for constructing an office-cum-commercial complex and residential complex on government-owned land.
For the period 2009–10 to June 2012, the appellant paid service tax by availing the benefit of Notification No. 01/2006-ST dated 01.03.2006 and paid tax on 33% of the gross taxable value. However, the appellant had also availed Cenvat credit on certain input services used for providing the output taxable service. After July 2012, the appellant paid service tax at the rate of 25% of the gross taxable value under Notification No. 26/2012-ST dated 20.06.2012.
During an audit, it was found that the appellant had availed Cenvat credit on input services, and therefore the benefit of Notification No. 01/2006-ST was alleged to be unavailable for the period up to June 2012. It was further alleged that the benefit of Notification No. 26/2012-ST was not available after June 2012 because the construction was undertaken on land belonging to the Government of Meghalaya and the property was not intended for sale to prospective buyers. The audit also found that the appellant had utilized Cenvat credit of ₹4,10,007 despite having a balance of ₹3,82,578, resulting in excess utilization of ₹27,429. It was also alleged that service tax had not been paid on Renting of Immovable Property Service.
