MILLENNIUM CONSTRUCTIONS PVT. LTD. Vs. C.S.T.

JUDGEMENT

(1.) THIS appeal is preferred against the adjudication order by the Commissioner of Service Tax, New Delhi confirming service tax demand of Rs. 1,11,02,564/ -, apart from interest and penalties, pursuant to a show cause notice dated 10.7.2006, covering the period 10.9.2004 to 31.3.2006. During this period, appellant provided construction service which later on was renamed and redefined as Commercial or Industrial Construction service; and construction of complex service. During rendition of these taxable services, petitioner received certain materials from recipients of the respective taxable services, free of cost for incorporation into works executed for their benefit. The appellant remitted service tax on the consideration received for rendition of these services. It did not however disclose in the returns filed the presumptive value of the free supplies nor remitted tax on such value. The appellant availed benefits of Notification Nos. , dated 10.9.2004 and 18/2005 -ST dated 7.6.2005, while remitting tax on the consideration disclosed.

(2.) THE impugned adjudication order confirms the demand indicated above on the basis that the presumptive value of the free supplies is also a consideration received for the rendition of the services and that this component and non -disclosure of this component disentitles availment of the benefits of Notification Nos. , dated 10.9.2004 and dated 7.6.2005.

(3.) IN the circumstances, the impugned adjudication order is unsustainable and is quashed. This order records that the appellant had already deposited the tax demand, of Rs. 1,11,02,264/ - and this amount is appropriated. In the circumstances, as the appeal is allowed, the appellant shall be entitled to the refund of the amount of tax already remitted, in accordance with law.