9911796707
TMI Blog2023 (4) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... or buildings having more than 12 residential units, a common order and any one or more facilities or services such as park, lift, parking space, community hall, common water supply or effluent treatment system. However, a show cause notice dated 16.03.2016 was issued to the appellant alleging that on the basis of third party information data for the financial year 2012-13 it came to the notice of the Department that the appellant was providing works contract service but had not paid service tax as a result of which the premises of the appellant was visited on 26.03.2015 by the Officers. Regarding the invocation of the extended period of limitation, paragraphs 10 and 11 of the show cause notice allege that the appellant had willfully suppressed material facts from the Department with intent to evade the payment of service tax. Paragraphs 10 and 11 are reproduced below: "10 . Whereas, as per records submitted by the assessee the liability of service tax has been calculated as detailed below:- Period Gross value Service Tax Educatio n Cess SHE Cess Total 01.10.10 to 31.12.10 57044905 5704491 114090 57045 5875625 01.01.11 to 31.03.11 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deliberately suppressed the fact with intent to evade payment of service tax." (emphasis supplied) 3. The appellant filed a reply to the show cause notice asserting that it was not liable to pay service tax and in any case it had not suppressed any facts since it was not liable to pay service and so the extended period of limitation could not have been invoked in the facts and circumstances of the case. 4. The Commissioner, by dated 24.01.2017, confirmed the demand of service tax and in regard to the extended period of limitation recorded the following findings. "47. As regards the allegation of suppression of facts, I find that there has been a deliberate act by the noticees to suppress the information in as much as they did not declared the value of services provided in their service tax return in the form ST-3 filed for the period from October 2010 to June 2012 and also did not pay service tax. As per scheme of the law, the assessee is required to determine the classification of service and pay tax on selfassessment basis which they failed to do. This clearly proves that they deliberately indulged in suppression of facts with an i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on for the reason that in regard to the same allegations contained in the show cause notice dated 16.03.2016, a show cause notice dated 05.04.2011 had earlier been issued to the appellant for the period 01.04.2017 to 30.09.2010 and in this connection copy of the show cause notice dated 05.04.2011 has been placed. The submission is that if the Department was aware of the nature of the activities conducted by the appellant on 04.11.2011, the show cause notice for the subsequent period from October 2010 to June 2012 could have been issued within the normal period of limitation and there was no reason for the Department to wait till 16.03.2016 to issue the show cause notice. 6. Shri Harshvardhan, learned authorized representative appearing for the Department has, however, supported the impugned order and has contended that from the work orders placed by the appellant it cannot be said that the appellant had not constructed a new residential complex. Learned authorized representative also submitted that as information was received from a third party and the inspection of the premises was carried out in 2015, it cannot be urged that the extended period of limitation was incorrectl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s such as park, water supply etc. In these schemes, Rajasthan Housing Board awarded contracts to different contractors for completion of these schemes. These facts have also been admitted by Shri Sushil Kumar Sharma, Partner of the firm in his statement recorded on 01.03.2011. 12. Whereas, as per records submitted by the assessee, Annexures (Annexure-A to Annexure-F) have been prepared for calculation of actual service tax liability upon them during the period from 01.04.2007 to 30.09.2010. As per annexure-'E', it appears that the assessee have short paid service tax amounting to Rs. 2,94,65,846/- (including Ed.Cess & SHE cess) during the said period. It also appears that the said assessee have willfully and deliberately suppressed the fact with intent to evade payment of service tax by contravening the provisions of section 66, 68 & 70 of the Finance Act, 1994 read with Rule 6 & 7 of the Service Tax Rules 1994, in as much as they were suppressing their taxable value by not disclosing to the department, not paying the Service Tax due, mis-classifying the services so rendered and non filing ST-3 returns under proper services. Therefore, provisions related to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s K B S Enterprises appeared in the office of Central Excise Commissioenrate, Jaipur on 27.3.2015 and submitted some of the contracts entered with Rajasthan Housing Board (RHB) for construction of houses, Balance Sheets, Form 26AS and Income tax returns for the period 2010-11 to 2013-14(RUD-1). 07. Whereas, on going through the provisions of law, letters/documents submitted by the assessee and scrutiny of works contracts in relation to construction of residential units to RHB, it appears that all the contracts are covered under the category of "Works Contract Service". In some cases the contracts have been awarded for not more than 12 Nos, residential units to the assessee but still the same appears to be covered under the works contract service as per definition of 'Works Contract Service, as the Rajasthan Housing Board awarded contracts in the schemes developed by them in different areas which have more than 12 residential units, common area, common facilities such as park, water supply etc. In these schemes, Rajasthan Housing Board awarded contracts to different contractors for completion of these schemes. This fact has also been admitted by Shri Bal Ram Meena, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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