Order date – 22 December 2022

Facts –

• The Appellant, Nexcel Infra, engaged in undertaking construction activities, mainly for various Government / Local authority related projects, in the capacity of a sub-contractor, for the main contractor M/s. Shantilal B. Patel & Co.
• Based on comparison of the Form 26AS/ITR statement and the taxable value declared in the ST-3 returns for the year 2016-17, it has been determined that the appellant is liable to pay Service Tax on the differential value.

Issue –

• Whether the appellant is liable to pay service tax on the differential value?

Order –

• The Tribunal held that the bonafide belief entertained by the Appellant cannot be questioned. Also if the Appellant was liable to pay Service Tax, back to back, even the main contractor would have also been liable to pay the same. Whatever Service Tax, if paid by the Appellant, would have been back to back availed as Cenvat Credit by the main contractor anyway.
• It was also held that without going into any other issues,the issue on hand can otherwise be decided in the facts and circumstances of the present case, on account of demands being time-barred.
• Hence the appeal is allowed.