K.B. Singh (Contractor) Vs Commissioner, Customs, Excise and Service Tax (CESTAT Delhi)
This appeal is filed by K.B. Singh1 assailing the order-in-appeal dated 07.01.2015 passed by the Commissioner (Appeals), upholding the order-in-original dated 11.02.2014 passed by the Deputy Commissioner of Central Excise & Service Tax, Jabalpur, whereby he confirmed service tax demand of Rs. 3,02,906/-against the appellant for the period 2007-2008 to 2008-2009 along with interest and imposed penalties under Sections 76, 77 and 78 of the Finance Act.
2. The facts of this case, in brief, are that the appellant is engaged in providing services of “maintenance and repair” and “commercial and industrial construction” and had provided such services to Nagar Palika Garhakota and M/s M.P. Warehousing and Logistics Corporation, Jabalpur and had not taken service tax registration nor paid service tax on the amounts received towards such services. A show cause notice dated 08.04.2010 was issued by the Deputy Commissioner, Central Excise, Jabalpur calling upon the appellant to explain why the service tax should not be recovered under Section 73 and why penalties should not be imposed.
3. The Deputy Commissioner passed the order-in-original dated 11.02.2014 confirming the demand of service tax of Rs. 3,02,906/- along with interest and imposing penalties under Sections 76, 77 and 78 of the Finance Act. This order was upheld by the Commissioner (Appeals) by the impugned order. Hence, this appeal.
4. Learned Counsel of the appellant Shri Ashish Batra does not dispute that the appellant had provided services as alleged and had received consideration for the services. He submits that during the period 2007-2008 an amount of Rs. 13,55,970/- was received for commercial construction services. An abatement of 67% of this receipt is available to the appellant towards the cost of material. He submits that an amount of Rs. 1,95,722/- was also received by the appellant towards repair and maintenance services during the year. According to him, if the abatement from the amount towards commercial construction services is considered, the value of the total taxable services rendered during 2007-2008 will be only Rs. 6,43,193/-. For the year 20072008 the threshold exemption for charging service tax was Rs. 8,00,000/-. Similarly, for the period 2008-2009 he submits that the total amount received for services after abatement will be only Rs. 3,55,419/- which would well below the exemption limit of Rs. 10,00,000/-. He submits the following details :-
FY 2007-2008
