Vinyl Tech Vs Commissioner (CESTAT Allahabad)
The CESTAT Allahabad allowed the appeal filed by the appellant and set aside the Order-In-Appeal passed by the Commissioner (Appeals), CGST & Central Excise, Allahabad. The dispute related to service tax demands raised against the appellant, a proprietary concern registered under the category of “Construction Service other than Residential Complex including Commercial Industrial Building.”
The proceedings were initiated on the basis of third-party information alleging that the appellant had provided taxable services but had not properly discharged service tax liability. A Show Cause Notice dated 22.10.2021 proposed recovery of service tax amounting to Rs. 4,77,120/- along with interest and penalties. The appellant explained that during Financial Year 2016-17, the gross receipts shown in the Trading and Profit & Loss account were bifurcated into sales, works contract, and job work.
The appellant submitted that the taxable value relating to job work amounted to Rs. 22,78,997/- and the corresponding service tax liability was Rs. 3,08,819/-. Out of this amount, Rs. 3,04,316/- had already been deposited and the balance amount along with interest totalling Rs. 10,811/- was subsequently deposited on 06.02.2026.
Regarding “Works Contract Service,” the appellant submitted that services had been provided to IIT Kanpur, ITI Limited Raebareli, and Power Grid Corporation of India. It was argued that these entities were government entities and therefore the services were exempt under Entry No. 12 of Mega Exemption Notification No. 25/2012-ST dated 20.06.2012.
