2023-VIL-1279-CESTAT-KOL-ST
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SERVICE TAX CESTAT Cases

Service Tax – Section 73(1) of Finance Act, 1994 – Demand invoking extended period of limitation – Revenue issued show cause notice to Appellant proposing demand of service tax in respect of services rendered to District Welfare Office, District Development Office, Zila Parishad and World Vision – Adjudicating authority confirmed demand proposed in show cause notice – Commissioner (Appeals) upheld order-in-original – Whether demand raised by invoking extended period is sustainable – HELD – Demand has been raised on basis of information available in Form 26AS of Income Tax department – Figures reflected in Form 26AS cannot be used to determine Service Tax liability unless there is evidence shown that it was due to a taxable service – Entire demand has been raised beyond normal period of limitation – Department has not adduced any positive evidence to show malafide intention or mens rea for evasion of Service Tax under any particular head of Taxable Services – None of ingredients necessary for invoking extended period of limitation as visualized under proviso to Section 73(1) of the Act exists in this case – Demand of service tax by invoking extended period is not sustainable – Demand is liable to be set aside on ground of limitation – Appeal allowed - Providing of services to Government authorities – Tax liability – Whether Appellant is liable to pay service tax in respect of services rendered to District Welfare Office, District Development Office and Zila Parishad – HELD – Services rendered to State Government has been exempted under Serial No.12A of Mega Exemption Notification No.25/2012-ST dated 20-6-2012 – Appellant is eligible for exemption, as services have been rendered to State Government authorities – Even if Appellant are required to pay service tax under Reverse Charge Mechanism, same will be available to them as Cenvat credit and hence, entire issue is of revenue neutral – Where situation is revenue neutral, no demand can sustain – Demand of service tax in respect of services rendered to District Welfare Office, District Development Office and Zila Parishad is not sustainable - Providing of services to charitable trust – Eligibility for exemption – Whether demand of service tax on services rendered to World Vision India is sustainable – HELD – World Vision India are registered as a Charitable Trust under Section 12AA of IT Act – Construction services provided to said Charitable Trust are exempted from service tax vide Serial 13(c) of Notification No.25/2012-ST – In impugned order, Appellate Authority denied exemption only on a technical ground that Appellant had provided details of Trust whose name in Certificate was mentioned as “World Vision of India”, whereas exemption was being claimed for “World Vision India” – Appellant submitted evidence to effect that World Vision of India and World Vision India are one and same – Appellant is eligible for exemption provided under Serial 13(c) of Notification No.25/2012-ST – Demand of service tax on this count is not sustainable – Demand of service tax confirmed in impugned order is not sustainable on merit as well as on limitation.
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