SSS Constructions Vs Commissioner of GST and Central Excise (CESTAT Chennai)
The appeal arose from Order-in-Original No. 91/2015-16 dated 28.01.2016 confirming service tax demand, interest and penalties against the appellant for the period from May 2008 to September 2013 in relation to Commercial or Industrial Construction Service/Works Contract Service for projects including SRM Medical College and Hospital, SRM Engineering Construction Corporation, Tamil Nadu Housing Board, Tamil Nadu Police Housing Corporation and others. The Department alleged non-payment of service tax on taxable construction services and confirmed a demand of Rs.1,82,28,130 along with interest, penalty of Rs.1,79,47,197 under Section 78 of the Finance Act, 1994 and penalty of Rs.10,000 under Section 77.
The appellant challenged the order, contending that the declaration filed under the Voluntary Compliance Encouragement Scheme, 2013 (VCES) had been accepted and attained statutory finality, making subsequent reopening beyond the prescribed period without jurisdiction. The appellant also argued that construction undertaken for educational institutions and Government bodies was not commercial in nature, that composite contracts had been incorrectly treated as labour supply or manpower services, that certain projects were executed as a subcontractor, and that reverse charge provisions under Notification No. 30/2012-ST and CBEC Circular No. 138/7/2011-ST had been ignored. It further contended that the extended limitation period and penalties were inapplicable as proper records had been maintained and there was no suppression of facts.
