2009 (5) TMI 206 - AT - Service Tax

Appellant is a civil contractor who takes up civil work on contract basis. The particular activity for which proceedings have been initiated for payment of Service Tax is asphalting and pot-hole filling existing roads and also clearance of materials from cooling point and shifting it to pits. Revenue has categorized this under Management, Maintenance or Repair Services . This is strongly contested by the appellant.- pre-deposit partly waived

Summary

The Appellate Tribunal CESTAT, Bangalore ordered the appellant to pay:
(i) Service Tax - Rs. 2,77,560/- and Education Cess of Rs. 5,551/-;
(ii) Interest under Section 75;
(iii) Penalty of Rs. 200/- per day or 2% under Section 76;
(iv) Penalty of Rs. 1000/- under Section 77; and
(v) Penalty of Rs. 2,83,111/- under Section 78.
The appellant, a civil contractor, contested the categorization of their work under "Management, Maintenance or Repair Services." The tribunal ordered a pre-deposit of Rs. 1,00,000/- and waived the balance amount till the appeal's disposal. Compliance was to be reported by 22nd July 2009.