2026-VIL-1786-CESTAT-KOL-ST
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SERVICE TAX CESTAT Cases

Service Tax - Invocation of Extended Period of Limitation for Demand Raised by SCN Beyond Five Years - Appellant was engaged in providing Clearing and Forwarding Agent Service and Business Auxiliary Service - SCN dated 22.10.2021 proposed recovery of service tax for the period April, 2016 to June, 2017 under the proviso to Section 73(1) of the Finance Act, 1994 - Adjudicating Authority confirmed part of the demand along with interest and penalty - Appellant contended that the SCN was issued beyond five years and that the extended period was not invokable as it had replied to the SCN and letters intimating details - Whether the demand for the period covered in the SCN issued on 22.10.2021 is barred by limitation - HELD - The SCN was issued beyond five years for a part of the period involved, which runs from 2016-17 up to June, 2017. The demand up to September, 2016 is therefore not sustainable on limitation itself - The demand is held to be sustainable only for the period within limitation, and the Tribunal proceeded to examine the merits of the remaining demand - Demand up to September, 2016 is set aside as time barred - Liability on Works Contract Service Rendered to Private Companies - Appellant supplied materials and executed renovation and alteration work in the factory plant of the recipient companies, and the Department alleged that the appellant had not paid service tax on such works contract - Adjudicating Authority confirmed the demand - Whether the appellant is liable to pay service tax on works contract service rendered to the said companies for the period within limitation - HELD - The appellant is liable to pay service tax on works contract service rendered to the said companies for the period 01.10.2016 to 30.06.2017 at the rate of 33% of the gross amount received. Interest is payable on the tax so determined - No penalty is imposable on the appellant - The demand is sustained for the period within limitation along with interest but without penalty, and the appeal is disposed of accordingly - Exemption to Commission Earned as Distributor of Telecom SIM and Recharge Vouchers - Appellant entered into an agreement for distribution of recharge vouchers and took distributorship of SIM of a telecom company, and the Department alleged that service tax was payable on the commission accrued - Appellant contended that the commission was exempted under Serial No. 29(f) of Notification No. 25/2012-ST dated 20.06.2012 - Whether the commission earned by the appellant from the telecom company is liable to service tax - HELD - The commission earned by the appellant is exempted at Serial No. 29(f) of Notification No. 25/2012-ST dated 20.06.2012. The appellant is therefore not liable to pay service tax on the commission earned from the telecom company - The demand confirmed on this account is set aside - Taxability of Supply of Plastic Dustbins and Portolet Toilets to Local Bodies and State Governments - Appellant supplied sanitary equipment such as plastic dustbins and portolet toilets to local bodies and State Governments and paid VAT on these transactions - Department alleged that service tax was payable on the amounts received, and the Adjudicating Authority confirmed the demand - Appellant produced invoices to show that the transactions pertained to sale of goods - Whether the supply of plastic dustbins and portolet toilets on payment of VAT is liable to service tax - HELD - The invoices produced by the appellant show that the transactions pertain to sale of the said goods on which VAT has been paid. The appellant has not provided any service but has supplied plastic dustbins and portolet toilets. The appellant is therefore not liable to pay service tax on such supply - The demand confirmed on this account is set aside.
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