Case Law Details
Sivaparameshwari Engineering Construction & Co Vs Commissioner of GST & Central Excise (CESTAT Chennai)
CESTAT Chennai remanded the matter back for de novo adjudication as appellant couldn’t obtain specific documents due to the outbreak of the Covid-19 pandemic.
Facts- The appellant had provided taxable services under the category of ‘Works Contract Services’ to PWD, Local bodies etc. These services involved construction of buildings for school, colleges, Court building, office buildings hospital etc. The appellant had not obtained service tax registration and had not filed ST-3 returns. As per the provisions of Notification No. 06/2015- ST dated 20.03.2015, the construction services provided to Government departments, except in the case of construction services provided to historical monuments, archaeological site of remains of material importance, archaeological excavation or antiquity specified under the Ancient monuments and archaeological sites of Remains Act, 1958 (24 of 1958) are liable to service tax w.e.f. 01- 04-2015, for the contracts entered after 01.03.2015. The appellant had entered into contracts with the Government Department and other local bodies for construction of buildings after 01.03.2015, executed works and collected the amount for the works executed. They failed to discharge the service tax on the consideration received. Investigation was intiated. Documents were verified and statements were recorded.
The original authority vide Order-in-Original No. 08/2022-ST (Commissioner) dated 31.05.2022 confirmed the demand of Rs.5,19,81,818/-along with interest and imposed penalties. Aggrieved by such order, the appellant is now before the Tribunal.
Conclusion- It is clarified in the above letter issued by the Public Works Department that the amount shown under ‘Service Tax’ heading has to be read as TDS on Sales Tax (VAT). Such letters have been issued by other Government departments also. The impugned order does not seem to have considered all these aspects. It is also to be borne in mind that in case of works contract services rendered to Government authorities, the amount is paid to the contractor on the basis of work completion as recorded in the Measurement Book (M-book) which is maintained by the departments. The appellant could not obtain such documents due to the outbreak of the Covid-19 pandemic. They have now produced filed miscellaneous application, and produced documents. We are therefore of the considered opinion that the appellant has to be given an opportunity to put their defence on the basis of the documents furnished by them.
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