Custom, Excise & Service Tax Tribunal Sri G Narender Reddy Contractor vs HyderabadIi Appeal on 1 March, 2024 1 Appeal No. ST/30318/2023 CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL HYDERABAD REGIONAL BENCH COURT NO. I Service Tax Appeal No. 30318 of 2023 (Arising out of OrderinAppeal No.HYDSVTAXMDAP20512122ST dated 31.03.2022 passed by Commissioner of Central Tax & GST (AppealsII), Hyderabad) Sri G. Narender Reddy .. APPELLANT Contractor Electrical And Civil 101224/A/33/2, Indrapuri Nagar, Medak, Telangana 502 112. VERSUS Commissioner of Central Tax .. RESPONDENT Hyderabad II Appeal Kendriya Shulk Bhavan, L.B. Stadium Road, Basheerbagh, Hyderabad, Telangana 500 004. APPEARANCE: Shri K. Mohan Gandhi, Advocate for the Appellant. Shri V Srikanth Rao, Authorised Representative for the Respondent. FINAL ORDER No. A/30190/2024 Date of Hearing:01.03.2024 Date of Decision:01.03.2024 [ORDER PER: ANIL CHOUDHARY] The Appellant is in appeal being aggrieved with rejection of settlement of the dispute under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 and demand of service tax. 2. The brief facts are that the Appellant is providing Works Contract Service (WCS) and Manpower Supply Service (MPSS) to Telangana State Southern Power Distribution Company Ltd., (TSSPDCL) of Telangana State (a PSU of the State Government). The works contract service is in the nature of erection of power lines, and the Manpower Supply is towards maintenance of substation etc., for ensuring the smooth power supply. The Appellant is registered with the service tax department. In respect of both of these services the Appellant is liable to pay service tax on part of the tax demand and the other part is payable under the reverse charge mechanism by the receiver of service. The proportion is provided in Notification No. 30/2012 ST as amended. For works contract, the Appellant is required to pay 50% of the tax liability and the balance 50% is payable by the service receiver. For 2 Appeal No. ST/30318/2023 Manpower Supply the Appellant is required to pay 25% up to 31.03.2015 and after 31.03.2015 100% is payable by the service receiver. 3. TSSPDCL were paying to the appellant only amounts contracted, for receiving these services, after retained that part of service tax payable by appellant to the Government, on the reason that being Government company it is their responsibility to pay necessary taxes payable to Government. Therefore, the appellant did not maintain any records, nor paid service tax payable by him. 4. On coming to know that it was his liability and also responsibility to pay to Government, the extent of service tax levied on him, the appellant took advantage of the then prevailing 'amnesty scheme' called "Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019" (SVLDRS, 2019); approached Senior Management of TSSPDCL got details of service tax liable to be paid by him and applied under the scheme declaring tax liability of Rs. 3,66,794/ under the category of 'voluntary disclosure', paid service tax and obtained discharge certificates in Form No. SVLDRS4 dated 14.01.2020 for the financial years 201415, 201516 & 201617 from Designated Authority for full and final settlement of service tax dues; got immunity from paying penalties and interest under the scheme SVLDRS2019. 5. On the contention that the amount of liability declared by appellant under SVLDRS2019 scheme was false and does not reflect true service tax liability, the Revenue issued show cause notice basing on the receipts shown in ITRs/TDS/26AS statements, pertaining to Financial Years 201415 to 201718, taking recourse to Section 129(2)(c) of SVLDRS scheme, demanding total (100%) service tax of Rs. 14,60,891/ from the appellant alone, unmindful of the fact that reverse charge mechanism (RCM) is applicable to the services rendered by appellant and received by TSSPDCL. 6. Section 129(2)(c) of SVLDRS2019, provides that in a case of voluntary disclosure, where any material particulars furnished in the declaration is subsequently found to be false, within a period of one year of issue of the discharge certificate, it shall be presumed as if the declaration was never made and proceedings under the applicable indirect tax enactment shall be instituted. It is a precondition termed as CONDITION PRECEDENT, only on fulfilment of which, a right of action comes to the department for instituting proceeding