KRISHNA CONSTRUCTION CO. Vs. COMMR. OF SERVICE TAX

JUDGEMENT

(1.) HEARD both sides on the stay petition.

(2.) The applicant is providing the service of commercial and industrial construction service. They have received cement and steel from the recipient of the services and constructed the buildings and handed over to the recipient of the services as per the terms of the agreement with the recipient of services.

(3.) WHILE determining the gross value of the services for the purpose of service tax the applicant has not disclosed and has not included the value of cement and steel received free from the recipients. Accordingly, the Commissioner included the said value and after extending the benefit of dated 7 -6 -2005, confirmed a demand of Service tax of Rs. 1,17,32,437/ - and in addition has imposed penalties under Section 78 and Section 76. The entire duty amounting to Rs. 1,17,37,437/ - stands deposited before issuance of show cause notice.