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TMI Blog2023 (6) TMI 954X X X X Extracts X X X X X X X X Extracts X X X X ..... thority. After considering the details given therein, the Adjudicating Authority has dropped the demand to the extent of Rs. 53.60 Lakhs and confirmed the demand only on the balance Service Tax amount of Rs.25.16 Lakhs. From the Annexure B attached to this Certificate, it is seen that the total outflow of labour charges has been divided into two parts. One part pertains to the labour charges paid to contractors and the second part pertains to labour charges paid to locally hired workers by the Company. Based on such bifurcation, the Adjudicating Authority has correctly arrived at the quantum of Service Tax applicable for the Labour Charges paid to the contractors - there are no error in the order passed by the Adjudicating Authority. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wer Services, they submitted that Show Cause Notice has been issued based on the Profit and Loss Account Balance Sheet figures wherein total cost incurred on account of Labour Charges has been given. They submitted that they have engaged the Manpower/Labour directly and also through the contractors. They submitted the Chartered Accountant s Certificate to this effect. The Adjudicating Authority after going through the factual evidence and the statutory provisions, dropped the demand of Rs.2,64,82,096/- on account of Works Contract Service . In respect of the Manpower Services, after considering the Chartered Accountant s Certificate and details provided by the Appellant dropped the demand of Rs.53,60,316/- and confirmed the demand of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered the Certificate issued by the Chartered Accountant and has dropped the demand to the extent of Rs.53.60 Lakh on the ground that the Appellant had engaged direct workers and hence no Service Tax is leviable on the same. Therefore, the AR submits that due consideration was given to the Chartered Accountant s Certificate by the Adjudicating Authority and now no further concession can be granted to the Appellant as is being pleaded by them in their Appeal. Accordingly, he submits that the Appeal filed by the Appellant is required to be rejected. 5. Heard both sides and perused the documents. 6. Admittedly the Show Cause Notice was issued towards the Manpower Services based on the Balance Sheet figures provided by the Appellant. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s paid to locally hired workers by the Company. Based on such bifurcation, the Adjudicating Authority has correctly arrived at the quantum of Service Tax applicable for the Labour Charges paid to the contractors. Therefore, I find no error in the order passed by the Adjudicating Authority. Accordingly, their Appeal contesting the confirmed demand of Rs.25,16,900/- is dismissed. 8. Coming to the agitation of penalty imposed, it is found from the records that the Appellant has paid entire amount of Rs.25,16,900/- after the adjudication order was passed. Therefore, the penalty is being reduced to 25% of Rs.25,16,900/- subject to the Appellant to paying interest amount along with this penalty within the 30 days from the date of receipt of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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