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TMI Blog2025 (1) TMI 543X X X X Extracts X X X X X X X X Extracts X X X X ..... dit of records of the appellant by the officers of Central Excise Commissionerate, Jaipur, it was observed that the appellant has provided Works Contact Service to M/s Kota Thermal Power Station, Kota (KTPS). Whereas, on perusal of the contract and scope of the work department observed that the appellant has been awarded work order for civil work for pollution control includes GWR with pump house for dust suppression in CHP area, RCC & PCC Flooring, Sire & garden work, car parking and cycle stand, construction of operation & maintenance store, RR stone masonry work, hand railing, drain and misc civil work as required at site of M/s KTPS, Kota. 1.1 Further the appellant has submitted VAT returns which shows that the assessee has also paid V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant submitted that the impugned order is passed at the second round of litigation. That the first appellate authority in its order, upheld the classification of service as 'Works Contract Service' but allowed the benefit of threshold exemption along with composition scheme to the appellant and remanded the matter back for re-quantification of tax and penalty after following the principles of natural justice. That in the remand proceedings, the demand of tax of Rs. 127, 905/- has been confirmed treating the service as works contract service along with interest thereon and applicable penalty. Ld. Counsel submitted that the said demand is barred by limitation. That the appellant did not have any mala-fide intention and there is nothi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned Departmental Representative while submitting on the issue of invocation of extended period of limitation as the sole ground raised by the appellant has at the outset reiterated the findings in the impugned order. In Para 18.6 thereof, it is submitted since the appellant was working under self assessment system, they were bound to file the correct ST-3 returns. The nondisclosure of their liability in the returns is rightly held to be an act of suppression. Since it resulted into short payment on service tax, there is an intention to evade the payment of tax. Hence, the extended period has rightly been invoked. With these submissions, the order is prayed to be upheld and appeal is prayed to be dismissed. 5. Having heard both the parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority below has justified the invocation of extended period holding that there is a suppression of facts on part of the appellant. 5.3 We observe that there is no dispute to the fact that during the period of dispute there was confusion about the nature of the services which involved the transfer of goods also. Despite that the concept of Works Contract Service got coined w.e.f. 01.06.2007 but the confusion remain to exist till the Year 2015 when Hon'ble Supreme Court while deciding the case titled as Commissioner of Central Excise and Customs, Kerala Vs. Larsen and Toubro reported as 2015 (39) STR 913 (SC) has held that in case of composite works contracts the service elements should be bifurcated ascertained and then taxed. 5.4 It is f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ef that he is not requested to give a particular information, only normal period of limitation i.e. 1 year is applicable. 5.5 The Hon'ble Supreme Court in the case of in Bharat Hotels Ltd. v. Commissioner of C. Ex. (Adjudication) (2018 (12) G.S.T.L. 368 (Del.), a Co-ordinate Bench of this Court had referred to the decision in Uniworth Textiles Limited and observed as under: 26. Therefore, it is evident that failure to pay tax is not a justification for imposition of penalty. Also, the word "suppression" in the proviso to Section 11A(1) of the Excise Act has to be read in the context of other words in the proviso, i.e. "fraud, collusion, wilful misstatement". As explained in Uniworth (supra), "misstatement or suppression of facts" does no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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