ASHISH CONSTRUCTION Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellant is a small service provider engaged in providing maintenance and repair services and had subsequently `istered for providing construction services. The appellant was registered w.e.f. 29 -11 -2004 for maintenance and repair services. The brief facts of the case are that for the financial year 2005 -06, the appellant entered into an agreement dated 16 -6 -2005 to render maintenance services to M/s. Ultratech Cement Ltd. The total turnover during the financial year 2005 -06 was Rs. 4,83,110/ - out of which Rs. 1,67,130/ - belongs to the period prior to 16 -6 -2005, during which no agreement was there for providing maintenance service and accordingly, the same was not taxable. The gross value of service from 16 -6 -2005 to 31 -3 -2006 is Rs. 3,19,256/ - which was within the exemption limit of Rs. 4 lakhs. For the next financial year 2006 -07, the gross value of service is Rs. 7,82,416/ - and after crossing the exemption limit of Rs. 4 lakhs during the financial year, the appellant paid Service Tax suo motu on the taxable value. The date of payment of tax was 30 -3 -2007. For the financial year 2007 -08 (upto 30 -9 -2007), the turnover is Rs. 5,84,161/ - which is apparently below the exemption limit of Rs. 8 lakhs as then applicable and it is further stated by the appellant that Service Tax of Rs. 72,202/ - was paid on 1 -1 -2009 after issue of show cause notice, under compulsion and also Service Tax for the earlier period 2005 -06 amounting to Rs. 44,080/ - was also paid under compulsion after issue of show cause notice.

(2.) IT is argued by the Counsel for the appellant that for the period 16 -6 -2005 to 31 -3 -2006 i.e. Financial year 2005 -06, the gross value of Rs. 3,19,256/ - is within the exemption limit of Rs. 4 lakhs and hence the same is not taxable. For the financial year 2006 -07, as the appellant had suo motu paid the Service Tax on the taxable value, there can be no proceedings under Section 73 of the Finance Act, 1994 and no penalty can be imposed. For the financial year 2007 -08, he states that the gross value being Rs. 5,84,161/ - (upto 30 -9 -2007) which is much below the exemption limit of Rs. 8 lakhs as amended by Notification No. , dated 1 -3 -2007, there can be no liability of Service Tax. Accordingly, he prays that the appeal be allowed by setting aside the Order -in -Original/impugned demands in full and allow the refund denied by the Commissioner (Appeals) vide the impugned order.