Srinath Builders & Housing Company Pvt. Ltd Vs Principal Commissioner of Central Goods and Service Tax (CESTAT Kolkata)
The appeal was filed by the appellant against Order-in-Original dated 04.05.2020 passed by the Principal Commissioner of CGST and Central Excise, Guwahati, which confirmed Service Tax of ₹5,16,70,590 (including Education Cess and Secondary & Higher Education Cess) for the period April 2013 to March 2018, along with interest under Section 75 of the Finance Act, 1994 and an equivalent penalty under Section 78. The demand was confirmed by invoking the extended period of limitation on allegations of suppression and wilful non-payment of Service Tax in relation to various works contract and other services undertaken by the appellant.
Material Facts and Procedural Background
The appellant, registered for “Works Contract Service,” executed construction projects for Government departments, Government agencies and other authorities, including projects for the Food Corporation of India (FCI), educational institutions, universities and Government authorities. Following an investigation by the Directorate General of GST Intelligence (DGGI), Guwahati, statements of company representatives were recorded, and a show cause notice dated 20.04.2019 proposed recovery of Service Tax on the allegation that the appellant had failed to discharge Service Tax on works contract services provided between 01.04.2013 and 30.06.2017. The appellant maintained that the services were exempt under various entries of l Notification No. 25/2012 – Service Tax, dated 20th June, 2012.The adjudicating authority nevertheless confirmed the entire demand with interest and penalty, leading to the present appeal.
