The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) directed re-consideration of the penalty imposed for the non-payment of service tax under the category of management, maintenance, or repair of service without verifying relevant documents.
Nandji Mishra, the appellant assessee was a contractor to the Government Departments and is engaged in providing services relating to the construction and maintenance of roads, buildings, and bridges.
The assessee appealed against the order passed by the Commissioner for confirming the service tax demanded along with interest and imposed penalties.
R.K. Hasija and Shivang Puri, the counsels for the assessee contended that the Service Tax on “Management, Maintenance or Repair Service” related to non-commercial Government buildings had been exempted by insertion of Section 98 of Finance Act, 1994, through Finance Bills, 2012 and therefore, services rendered to Government buildings such as Government Residential Quarters was liable to be set aside for the entire period of the dispute.
Rajeev Gupta and Shivam Syal, the counsels for the department contended that the services rendered by the assessee to Government Departments were taxable in the category of “Commercial or Industrial Construction Service”, “Management, Maintenance or Repair Service”, Manpower Recruitment or Supply Agency Service” and “Supply of Tangible Goods”.
The Bench observed that the assessee had failed to provide copies of the contract, which could have enabled to classify of the exact nature/ category of taxable services and classified under the category of Management, Maintenance, or Repair Services and the classification of service can be necessarily re-determined in adjudication proceedings based on copies of contract details, etc.
The two-member bench comprising S.S Garg (Judicial) and Anjani Kumar (Technical) directed to remand back the matter to the adjudicating authority to examine the issue afresh in the light of copies of the documents submitted by the assessee and changes brought out in the provisions of Service Tax.
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