Imposition of interest and penalty under Service Tax


Quick Summary
This appeal concerns M/s ECR Builders, who faced a demand of Rs. 40,79,178/- for service tax, along with interest and penalties. The demand arose after an investigation by the Anti-Evasion branch of the Central Excise Commissionerate, Alwar, which included searches of the appellant's office and residence. Despite summons, the appellant did not provide all requested documents, only a chart of their service tax liability and payments. The initial demand was confirmed, and the subsequent appeal was rejected, leading to the present appeal before the Tribunal.

Court :
CESTAT New Delhi

Brief :
The present is an appeal against the Order-in-appeal No. 24(SM) ST/JPR/2019 dated 28.01.2019. The relevant factual matrix for the adjudication of the impugned appeal is that based upon an intelligence by the Officers of Anti Evasion branch of Central Excise Commissionerate, Alwar that the office of M/s ECR Builders i.e. the appellant was searched on 31.01.2005. His residence premises was already searched vide Warrant No. 05/2015-ST dated 29.01.2015.

Citation :
Service Tax Appeal No. 50880 of 2019-SM

CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
NEW DELHI.

PRINCIPAL BENCH - COURT NO. IV
Service Tax Appeal No. 50880 of 2019-SM

(Arising out of order-in-appeal No. 24(SM) ST/JPR/2019 dated 28-29.01.2019
passed by the Commissioner (Appeals), Central Excise and Central Goods &

Service Tax, Jaipur).

M/s ECR Builders Appellant
Village Bilhari, Main Chopanki Road
Bhiwadi, Distt – Alwar, (Rajasthan).

VERSUS

Commissioner, Central Excise and Respondent
Central Goods & Service Tax
„A‟ Block, Surya Nagar
Alwar, Rajasthan.

APPEARANCE:
Shri B. L. Yadav, Advocate for the appellant
Shri Pradeep Gupta, Authorised Representative for the respondent

CORAM:

HON’BLE MS. RACHNA GUPTA, MEMBER (JUDICIAL)
FINAL ORDER NO. 51226/2021
DATE OF HEARING/DECISION: 05.04.2021

RACHNA GUPTA:

The present is an appeal against the Order-in-appeal No. 24(SM) ST/JPR/2019 dated 28.01.2019. The relevant factual matrix for the adjudication of the impugned appeal is that based upon an intelligence by the Officers of Anti Evasion branch of Central Excise Commissionerate, Alwar that the office of M/s ECR Builders i.e. the appellant was searched on 31.01.2005. His residence premises was already searched vide Warrant No. 05/2015-ST dated 29.01.2015. Several summons were issued to the Partners of the  appellant. However, all required documents were not provided by the appellant except that a chart showing the payment liability towards service tax and the deposits thereof made by the appellant. Based thereupon the Department vide show cause notice No. 7602 dated 27.09.2016 proposed the demand of Rs.40,79,178/- towards service tax liability of the appellant alongwith interest and the penalties under Section 78 of the Act. The said proposal was initially confirmed by the Order-in-original No. 12/2017-18 dated 14.11.2017. The appeal thereof has been rejected vide the order under challenge. Being aggrieved, the appellant is before this Tribunal.

To know more in details find the attachment file

FAQ :

The appeal was about a demand for Rs. 40,79,178/- towards service tax liability, including interest and penalties, imposed on M/s ECR Builders.

The demand was raised following an investigation by the Anti-Evasion branch of the Central Excise Commissionerate, Alwar, which included searches and the issuance of summons.

No, the appellant did not provide all required documents, only a chart showing their service tax liability and payments made.

The initial demand was confirmed by the Order-in-original, and a subsequent appeal to the Commissioner (Appeals) was rejected.

The penalty was proposed under Section 78 of the Act.

 

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