COMMR. OF CENTRAL EXCISE-DIBRUGARH Vs. NORTH EASTERN CABLE & CONDUCTORS PVT. LTD.
LAWS(CE)-2015-3-42
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on March 18,2015

Appellant
VERSUS
Respondents

JUDGEMENT

D.M. Misra, Member (J) - (1.)THIS is an appeal filed by the Revenue against Order -in -Original No. 09/ST/ADJ/COMMR/DIB/11 DATED -04/10/2011.
(2.)BRIEFLY stated the facts of the case are that on the basis of an audit objection, the respondent was issued with the demand notice alleging non -payment/short payment of Service Tax during the period 2006 -07, 2007 -08 and 2008 -09. It has been alleged that the applicant has not paid Service Tax of Rs. 1,18,32,451/ - for the period 2006 -07 and 2007 -08 in relation to the services rendered through their sub -contractors under the category of erection, commissioning or installation service to M/s. Assam Electricity Board. Also, it was alleged that during the period 2008 -09, they have short paid Service Tax of Rs. 73,99,165/ - on the value shown in their Balance Sheet in comparison to the value declared in the ST -3 Returns. On adjudication, the Ld. Commissioner dropped the proceedings initiated against the respondent -assesse.
Aggrieved by the said order, the Revenue is in appeal.

(3.)THE Ld. A.R. for the Revenue Shri Chowdhury has submitted that the Ld. Commissioner has erroneously dropped the demand of Rs. 1.18 Crores observing that the sub -contractor who had rendered the services to the appellant are liable to discharge the Service Tax and not the respondent assesse. He has submitted that the appellant had rendered the services of erectioning, commissioning or installation services to M/s. Assam Electricity Board as an installation and commissioning Agency. Therefore, during the audit of the records, it was noticed that the appellant though received the amount and paid to their sub -contractors who are called as Sardars but not discharged any Service Tax on the same. On the issue of short payment of Service Tax, the Ld. A.R. for the Revenue has submitted that without scrutinizing the evidences on record, the Ld. Commissioner has dropped the demand observing that the said amount has not been received in the year 2008 -2009.
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