Customs, Excise and Services Tax Appellate Tribunal (CESTAT): A Division Bench of Sulekha Beevi (Judicial Member) and Anil G. Shakkarwar (Technical Member) allowed an appeal filed aggrieved by the order of the Commissioner.
The appellants, who were engaged in execution of construction services, were issued Show Cause Notice dated 07-10-2010 proposing to demand Service Tax under the category of ‘Construction of Commercial or Industrial Complex Service’ and ‘Construction of Residential Complex Service’.
The Original Authority confirmed the demand, interest and passed an order in respect of penalty, against the reduced penalty imposed by the Additional Commissioner, the Department had filed an appeal before the Commissioner result of which the Commissioner had modified the penalty thus the appellants had filed the instant appeal. The counsel for the appellant, M. Vigneshwari submitted that appellant had paid up the Service Tax liability to the tune of Rs 36,39,526 much before the issuance of Show Cause Notice. However, the demand raised in the Show Cause Notice was Rs 46,36,419. The appellant had pleaded to grant them the benefit of cum-tax value. After extending such cum-tax value benefit, Service Tax liability was re-determined as Rs 39,80,678. The appellant had paid the remaining Rs 3,41,152 along with interest. They had also paid penalty of Rs 10,000 and also 25% of the reduced penalty.
The Court while allowing the appeal stated that the appellant had paid up major portion of the Service Tax liability before issuance of the Show Cause Notice and later paid up the balance amount. Thus the order needs to be set aside. [MSR Constructions v. Commr. Of CE & ST, Service Tax Appeal No. 40460 of 2013, decided on 06-03-2020]
