KALA SAGAR Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) THE appeal is directed against Order -in -Original No. 20/ST/SB/2011 -12 dated January 31, 2012 passed by the Commissioner of Service Tax, Mumbai -II. The appellant M/s. Kala Sagar, undertook renovation/restoration work for M/s. State Bank of India, Nariman Point Branch, Mumbai, in the premises which was situated in 9th Floor of the State Bank Bhavan. The work undertaken included, masonry work, plastering, tiling, false ceiling, painting, making furniture, electrical fitting, ducting work and plumbing work. On investigation of the activities of the appellant, it was revealed that the appellant undertook all types of civil construction contracts and also furniture contracts and they had earned an income of Rs. 42,83,30,983 during the period 2005 -06 to 2009 -10. It appeared that the activity undertaken by the appellant fell under the category of "commercial or industrial construction service" and they were liable to discharge service tax liability of Rs. 4,89,36,312 on the consideration received for the services rendered. However, since the appellant did not obtain any service tax registration nor discharge any service tax liability, a show -cause notice dated October 14, 2010 was issued demanding service tax of Rs. 4,89,36,212 on the activities undertaken by them during April 2005 to March 2010 along with interest thereon by classifying the service rendered as "commercial or industrial construction service" and also proposing to impose penalties under the provisions of the Finance Act, 1994. The appellant contested the levy on the following grounds:

(2.) THE learned counsel for the appellant made the following submissions:

(3.) WE have carefully considered the submissions made by both the sides. Section 65(25b) reads as follows: