Lomesh Kumar (DAPL) Vs Commissioner (CESTAT Allahabad)
The appeal challenged an order confirming service tax demand on the appellant for the financial years 2015-16 and 2016-17, based on data obtained from the Income Tax Department and Form 26AS. The appellant, engaged in providing workers to Government Authorities for road construction, had not discharged service tax on the belief that such services were not taxable and had surrendered registration in 2015. A show cause notice demanded tax along with interest and penalties, which was confirmed by the adjudicating authority and upheld in appeal.
The appellant contended that the issue had already been decided in its favour by the Tribunal for an earlier period on identical facts, where it was held that services rendered to Government Authorities in relation to road construction were exempt under Notification No. 25/2012. It was also argued that invoking the extended period in a subsequent show cause notice was not permissible.
The Tribunal observed that the appellant had provided services to Government Authorities such as the Public Works Department, and this fact was not disputed. It noted that the earlier decision of the Tribunal applied to the present case, as the facts and nature of services were identical. The services were found to fall within the exemption provided under Notification No. 25/2012, covering construction, repair, and maintenance of roads for Government Authorities.
