Applicability of Service Tax

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BAL KRISHAN GARG (Querist)
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04 October 2009 Respected Madhukar Ji,

Thanks for your reply and explanation in the present issue.
Here I brief some facts for more clarification :
A is responsible for doing the job of powder coated pains on the outer body of geysers and c/fans .A alongwith his labour team done the job specified on the raw outer body and raw blades provided by Mr.B in the factory premises of B .
Further B after completion of paint jobs on the geysers and blades either used in the final product which are excisable and cleared the same after payment of duty or
sold as a spare parts on the payment of duty only and no quantity will be sold without payment of duty .
on the face of bills raised for the job work it was printed as " JOB WORK ONLY " and " Job Work for the month of ....." and pieces painted during the month and passed as per quality norms of B were billed as total no of pieces * rate per piece for exa.( 12419 * .70 = 8,693.30 ).
It was also confirmed by Mr.B to the Division concerned in writing during the cross enquiry made with B and he informed as under :
" A is doing only Job work on our material in our factory premises and the materials after necessary inspection by the quality inspector is cleared after the payment of Excise Duty " and
" We have made payment on pcs.Rate basis which are OK by our quality inspector " and
" We have enclosed ledger account of the Job Worker for the F.Y. 05-06 ,06-07 , 07-08 AND 08 -09 " and
" There is no writter agreement with Mr. A " .
I have submitted all the photocopies of the bills,ledger account , Form -16 A ,photocopy of bank statement and copy of ITR filed by me and convinced by personal appearance and claimed the benefit of the notification 8 /2005 .

the department has issued show cause notice which is undated but received by A on 30/9/2009 in which they demand ser.tax for 5 years stating that Mr.A has intentionally and willfully suppressed the facts of rendering tax.services to B while Mr.A has not hide any facts from the dept.from the very intial stage .
My Second query whether the dept.can take this type of steps on its own for just imposing a huge amount which in actual not liable ?
Further I have seen unofficially a letter from the concerned division chief to his higher authority in which he was agree that this is not a case of labour supply but it is a Job work case sent by the division which i have made all enquiries at my end .
Please guide me whether Show Cause under manpower'recruitment instead of BAS will void as the facts stated above.Whether the dept.can issue undated Show Cause notice?
I will be highly oblidged to you .

Thanks ,

BAL KRISHAN GARG

Rajesh Kumar

Rajesh Kumar (Expert)
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10 October 2009 India is a strage country- here anybody can make any allegation against any person. The accused shall defend the case for decades and and then win. The accuser will not loose anything. As there is no provision to impose cost on the department for ussuing frivolous show cause notices, the departmental officers issue such notices. It is also useful in extorting corrupt money from the hapless assessee.
The services provided by you falls under job work. Contest it, you will win. But you are destined to fight till tribunal, as departmental adjudication is a mockery of justice.

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