9911796707
TMI Blog2022 (10) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... ged in the works contract/repair and maintenance contract and work has been done for Public Sector Undertakings like Bharat Sanchar Nigam Ltd. (BSNL), Life Insurance Corporation of India (LIC), etc. For the financial years 2014-2015, the appellant had filed its returns for both the half years in time and total admitted tax, as per return for 2014-2015 is Rs.2,73,000/-. 4. The appellant had availed abatement for the material component as permissible under Rule 2 A of Service Tax (Determination of Value) Rules, 2006, wherein it is provided that with respect to original work, the taxable value under Service Tax is 40% of the gross amount charged. Whereas for repair and maintenance works, or re-conditioning or restoring, the taxable value is 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oticee failed to submit the details called for. It appeared that they have not paid service tax nor filed ST-3 Returns. It was proposed to demand service tax on the gross amount @ 12.36%. Thus, demanding tax of Rs.6,97,957/- along with interest. Further, penalty was proposed under Section 78, 77 (1)(c) and 77 (1)(d) and further, late fee was proposed under Rule 7 C of with Service Tax Rules read with Section 70 of the Act. 9. The show cause notice was adjudicated on contest and the proposed demand was confirmed along with interest. Further, equal amount of penalty was imposed under Section 78. Penalty of Rs.10,000/- under Section 77(1)(c) and Rs.10,000/- under Section 77 (2) for not filing periodical ST-3 Returns were also imposed. 10. Be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. and LIC of India Ltd., (ii) photocopy of Notice inviting Tenders issued by BSNL, (iiii) copy of the Agreement dated 28.02.2014 with BSNL Electric Division, Bilaspur/Bhopal. Copy of the some R.A. Bills, copy of the bills issued to LIC of India. However, Commissioner (Appeals) have erred in ignoring the facts apparent on the face of the records. He erred in confirming the demand of tax as per the adjudication order along with penalty. 14. Ld. Counsel has taken me through the various documents like work order etc. filed with the paper book. It is evident that nature of work includes use/supply of materials. Thus, I find that rejection of the claim of abatement for material component by the court below is against Valuation Rules and facts o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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