SEW CONSTRUCTION LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE short issue in this case is whether the sub -contractor who provided service to the main contractor shall be exempted from levy of service tax. The Appellant being a sub -contractor of BHEL, executed certain work for such main contractor. The main contractor BHEL was awarded work order by BESCL. There is no dispute by either side on this modality of arrangement of contractor and sub -contractor. There is also no dispute that period involved in adjudication is 8th July, 2005 to 7th August, 2006. When the Appellant sub -contractor did not seek registration under Finance Act, 1994 and also did not file the return till 24th January, 2007 for the above period, faced adjudication, resulting in levy of service tax demand of Rs. 1,51,14,126/ - with equal amount of penalty under Section 78 of Finance Act, 1994. So also penalty under Sections 76 and 77 was levied. The demand levied above was followed by interest under Section 75 of Finance Act, 1994.

(2.) LEARNED DR appearing on behalf of revenue supports entire reasoning and consequence of the order of adjudication.

(3.) HEARD both sides and perused the records.