Service Tax
TRT-2025-
Cestat New Delhi
Date:-19-09-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 19 September 2023
Parties: M/s Rangoli Division, A Unit of Megha Colonizers Vs Commissioner (Appeals)
Facts –
- The Appellant, M/s Rangoli Division, A Unit of Megha Colonizers, is providing construction services in respect of commercial or industrial buildings, and construction of residential complex.
- A show cause notice was issued to the appellant proposing to deny the exemption available as per Notification No. 36/2010-ST dated 28.6.2010 alleging that in respect of advance received through cheques dated 29.06.2010/30.06.2010, which were honoured on or after 01.07.2010 and invoking the extended period of limitation.
- The demand confirmed along with interest and penalty. Being aggrieved the appellant filed the appeal.
Issue –
- Whether the appellant was justified in claiming exemption from payment of service tax under the Notification?
Order –
- The Tribunal observed that in the present case, the Commissioner (Appeals) did not even record a finding that the appellant had any intention to evade payment of service tax since all that has been recorded in the impugned order by the Commissioner (Appeals) is that the correct facts came to the notice of the department only when the audit was conducted.
- In the absence of a finding that suppression of facts was with intent to evade payment of service tax, which is absolutely necessary, the extended period of limitation could not have been invoked. The entire demand confirmed by the Commissioner (Appeals) falls in the extended period of limitation.
- It was found that the appellant may have been under a bonafide belief that it was not required to pay service tax on the amount collected through cheques of dates prior to 01.07.2010 though encashed after 01.07.2010, but in any case, there was no wilful suppression of facts by the appellant with intent to evade payment of service tax.
- Such being the position, it is not necessary to examine whether the appellant was justified in claiming exemption from payment of service tax under the Notification. The impugned order dated 12.03.2018 and the appeal is allowed.
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