GOVERNMENT OF INDIA

OFFICE OF THE JOINT COMMISSIONER OF CENTRAL TAX

HALDIA CGST & CX COMMISSIONERATE
2ND FLOOR, 9C, ESPLANADE ROW (East), KOLKATA-700 069

C. No. Date :

To
SHREE AUTOMOTIVE PRIVATE LIMITED.
NH - 6, Junglepur, Argora, Howrah,
West Bengal, PIN: 711302,
[Mail id: sapl_2004@yahoo.co.in as recorded in ST-1] [ Mobile No.9830320704]
[S.T. Registration No. AAECS6807QSD002]

NOTICE TO SHOW CAUSE CUM DEMAND

Whereas it appears that SHREE AUTOMOTIVE PRIVATE LIMITED. NH - 6,

Junglepur, Argora, Howrah, West Bengal, PIN: 711302, [Mail id: sapl_2004@yahoo.co.in as
recorded in ST-1] having PAN based Service Tax Registration No. AAECS6807QSD002
(hereinafter referred to as “the said taxpayer”) have contravened the provisions of Section 65B,
66B, 67, 68(1) and 70 of the Finance Act, 1994 (hereinafter referred to as “the said Act”) read with
Rule 6, 7 & 7C of the Service Tax Rules, 1994 and Point of Taxation Rules, 2011 (hereinafter
referred to as “the said POT Rules”), in as much as the said Tax Payer, have not discharged their
Service Tax liability (including E. Cess, S&HE Cess, S.B. Cess and K.K. Cess) to the tune of Rs.
30,22,208/- (Rupees Thirty lakh twenty two thousand two hundred eight) only [as detailed in
ANNEXURE-A attached / enclosed to this Notice] on the values of Taxable Services, namely
Contractor, Maintenance or Repair Service, Security/detective agency service, Business
auxiliary service, for the financial year 2014-15 to 2017-18 (Up to June 2017) mis-declaring and
suppressing the material facts from the department (as detailed hereinafter) with clear intention to
evade payment of the said amount of Service Tax. Therefore, Service Tax to the tune of Rs.
30,22,208/- (Rupees Thirty lakh twenty two thousand two hundred eight) only is recoverable
from them along-with appropriate Interest and for such omission and commission with an intent to
evade payment of Service Tax, the said taxpayer is also liable to penalty.
 2. Brief facts of the case:
On analysis of the Income Tax Returns / FORM 26AS data for the financial year 2014-15 /
(AY 2015-16) as shared by the CBDT [Ref. ANNEXURE-B] with a view to identify possible
leakage of Service tax revenues for some of the taxpayers registered with the service tax department
for providing taxable services, it was observed that the turnover on account of services declared in
the ITR as appear in the Third Party ITR/TDS data received from CBDT did not match with the
values declared in the corresponding Service Tax ST-3 Returns filed for the respective F. Y. (2014-
15) (Ref: Annexure-C). Accordingly, it was held that an investigation was required to be
conducted upon those tax payers to ascertain and examine the reason of discrepancy in terms of
turnover / value of taxable service as declared by them. From the list, it was observed that for the
Financial Year 2014-15 / A.Y. 2015-16, there is a mismatch of figures / values on account of
services provided by them as per the ITR / TDS data vis a vis the value declared in the
corresponding Service Tax ST-3 Returns of that F.Y.
Accordingly, the said taxpayer was requested to submit their complete Income Tax Returns
including FORM 3CD, 194C,194H, 194I, 194J & 26AS time and again.

Chronology of Facts:
(1) On 22.01.2020, the assessee was requested to furnish their reply / clarification along with
copies of complete Income Tax Return along with Form 3CB/3CD AND all particulars
submitted to Income Tax Department regarding TDS of their business concern vide office
Letter issued under C. No. V(30)02/Third Party/R-III/JPD/2019/264 dated 22.01.2020
through Speed Post;
(2) On 15.08.2020, an email was sent reminding the assessee to furnish their reply to the earlier
letter dated 22.01.2020 and therein the assessee was also requested to furnish the following
documents, namely – Income Tax Returns (including Form 3CB/D, 194C, 194H, 194I,
194J & 26AS) for the F.Y. 2014-15, 2015-16, 2016-17, AND data of Income Tax Returns
(including Form 3CB/D, 194C, 194H, 194I, 194J & 26AS) for the period April 2017 to
June 2017;
(3) On 20.08.2020, the taxpayer was again reminded and requested (through email) to furnish
the sought for documents and it was also mentioned for the taxpayers attention that if they
fail to furnish the documents sought for, the department would be bound to contemplate all
statutory measures to protect revenue on the basis of whatever documents / records / data /
information available with the department.
(4) On 24.08.2020, The assessee/taxpayer was requested to furnish their comments on a
tentative figure of payable service tax worked out by taking a 20% Year-on-Year increase.
 However, the assessee did not respond at all. On subsequent thorough scrutiny, it was
observed that the assessee has themselves declared a certain growth in their value of taxable
Services declared in the ST3 Returns. So, it was deemed that the said year-on-year increase
as was already declared by the assessee in their ST3 Returns is more appropriate as an year-
on-year multiplier to work out the figures of payable service tax in terms of Section 72
(Best judgement assessment) of the said ACT. Accordingly, recoverable amount of
Service Tax has been worked-out taking the Third Party data as base figure for the Financial
Year 2014-15 and the recoverable amounts for the respective remaining Financial Years
have been worked-out applying the year-on-year ratio of increase reflected in figures of ST-
3 Returns of the respective Financial Year 2015-2016, 2016-17 & 2017-18 (For the period
April 2017 to June 2017) as under :

Total Value of Taxable Service declared in ITR (P&L A/c) of 2014-15 (as per Third Party data)
= Rs. 7,08,79,420/- which is higher than Rs. 6,84,07,392/- (given in ST-3 of 2014-15) by
Rs. 24,72,028/-
Total Value of Taxable Service declared in ST-3 of 2014-15 = (Rs. 3,22,71,327 + Rs. 3,61,36,065)
=Rs.6,84,07,392/-
Total Value of Taxable Service declared in ST-3 of 2015-16 = (Rs. 2,77,79,519 + Rs. 5,19,31,510)
= Rs.7,97,11,029/-
Total Value of Taxable Service declared in ST-3 of 2016-17 = (Rs. 6,03,44,127 + Rs 6,55,55,127)
= Rs.12,58,99,254/-
Total Value of Taxable Service declared in ST-3 of 2017-18 (April 2017 to June 2017)
= Rs. 3,46,06,355/-
= 3,46,06,355 X4 (If annualised)
= 13,84,25,420/- (For full Year)

From the above values of taxable service as reported in the ITR of Financial Year 2014-15 and the
values of taxable services as reported in the ST-3 Returns for the Financial years 2014-15, 2015-16,
2016-17 & 2017-18 (Up to June 2017), two things transpire crystal clear that –
Firstly, the assessee has not reflected / accounted for their true & correct value of taxable service in
their ST-3 Returns submitted to the Service Tax Department for the Financial Year 2014-15 & a
portion of taxable values kept suppressed from the Service Tax Department as is evident from the
bare fact that amount of taxable value declared in ITR ( Rs. 7,08,79,420/-) is substantially higher
than the Total amount of taxable value ( Rs. 6,84,07,392/) declared in the two ST-3 Returns
submitted for 2014-15 and
Secondly, there is a year-on-year incremental growth in values of taxable services as declared in
ST-3 Returns submitted for the period from (2013-14), 2014-15, 2015-16, 2016-17 & 2017-18 (For
the period from April 2017 to June 2017).
So, the quantum of suppressed part of taxable values cannot be without having any bearing with the
incremental growth ratio/rate/percentage reflected in ST-3 Returns of the respective Financial
Years.
So, it would be quite logical & rational to apply Best judgment principle in terms of Section 72
of Finance Act, 1994 taking the year-on-year growth ratio as reflected in the ST-3 Returns of the
respective Financial Years as a cue or yard stick or multiplier factor to work out the possible taxable
values of the respective ITR(s) and, thereby, to quantify the suppressed amount of values of taxable
service and the evaded amount of Service Tax involved therein for the period with effect from
Financial Year 2014-15 to 2017-18 (Up to June 2017) in the instant case where the assessee has not
furnished any copy of their ITRs in spite of repeated requests from the department.

Thus,
Worked-out Value of Taxable Service in ITR for the F.Y. 2015-16 would be
= Rs. [7,08,79,420 x 7,97,11,029 / 6,84,07,392] = Rs. 8,25,91,535/-
[Differential Value = (Rs. 8,25,91,535 – Rs. 7,97,11,029) = Rs. 28,80,506/-]

Worked-out Value of Taxable Service in ITR for the F.Y. 2016-17 would be
= Rs. [8,25,91,535 x 12,58,99,254/7,97,11,029] = Rs. 13,04,48,857/-
[Differential Value = (Rs. 13,04,48,857 – Rs. 12,58,99,254) = Rs. 45,49,603/-]
&
Worked-out Value of Taxable Service in ITR for the F.Y. 2017-18 (April 2017 to June 2017)
would be = Rs. [13,04,48,857 x 3,46,06,355x4/12,58,99,254] /4 = Rs. 3,58,56,920/-
[Differential Value = ( Rs. 3,58,56,920 – Rs. 3,46,06,355) = Rs. 12,50,565/-]

Thereby, the said tax payer /assessee appears to be liable to pay Service Tax (including all Cesses)
to the tune of Rs. 15,93,241/- (Rs. Fifteen lakh ninety three thousand two hundred forty one ) only
alonwith appropriate interest and penalty. [Detailed Calculation of Taxable values has been
shown in the ANNEXURE-A attached / enclosed with this Notice]

The said tax payer /assessee was requested time and again to furnish copies of their Income Tax
Returns through sending letter and emails to which the assessee did not respond. To invite the
assessee’s attention to emails, SMS was also sent to the mobile No. available in the Third Party
Data. But, in spite of all efforts to persuade the assessee they did not respond. Thus, non-submission
of any reply / response to official correspondences appears to be deliberate and conscious on the
part of the assessee.
[All correspondences & emails referred as ANNEXURE-D attached to this Notice].

LATE FILING OF ST-3 RETURN:

Now, further study / examination of the said ST-3 Returns reveals that the ST 3 Return for the
Period October 2014 to March 2015 was filed on 09-06-2015, instead of 25.04.2015 i.e. after 45
days from the due date and the ST 3 Return for the Period April 2017 to June 2017 on 25-08-2017
instead of 15-08-2017 i.e. after 10 days from the due date. The assessee is, therefore, liable to pay
a penalty / late of Rs. 3,000/- (Rs.2500+Rs.500) for the said late filing of the said ST-3 Returns.

PAYMENT CHALLANS DOES NOT EXISTS/MATCH/TALLY WITH THE NSDL:

It appears from the ST3 Returns available on the Portal that the following payment Challans of the
assessee pertaining to ST-3 Return for the period from October 2016 to March 2017 does not
match/exist. The portal has listed those 3 challans with observation as under:
(1) The Challan Number { 00053470703201775296 } for {Rs.368410/-} in H1 section does not exist and/or is not
matching with the Registration Number available in the database.
(2) The Challan Number { 00053470703201775296 } for {Rs.599016/-} in H1 section does not exist and/or is not
matching with the Registration Number available in the database.
(3) The Challan Number { 00053472604201745862 } for {Rs.461541/-} in H1 section does not exist and/or is not
matching with the Registration Number available in the database.
The said tax payer /assessee is, therefore, liable to pay a total an amount of Rs.14,28,967/-
[Rs.368410+ Rs.599016+ RS.461541 = Rs.14,28,967/-] (Rupees Fourteen lakh twenty eight
thousand nine hundred sixty seven) only along with appropriate interest and penalty.

However, it may be reiterated once more that the assessee has not furnished any reply to office
letter and reminders emails issued to them from the Office of the Superintendent, CGST&CX,
Range-III, Junglepur Division of Haldia Commissionerate and did not respond at all though all the
reminder emails have been sent to the registered mail id recorded in Form ST-1 of the assessee
(Annexure – E) and were duly delivered to them.

Therefore, the assessee appear to have evaded an amount of Service Tax (including Cesses) to the
tune of Rs. 30,22,208/- ( Rs. 15,93,421 + Rs. 14,28,967) [Rupees Thirty lakh twenty two
thousand two hundred eight] only as detailed in ANNEXURE-D attached/enclosed with this
notice in contravention of the provisions of Section 65B, 66B, 67, 68(1) and 70 of the Finance Act,
1994 read with Rule 6 & 7 of the Service Tax Rules, 1994 and POT Rules and therefore is
demandable and recoverable from them under proviso to Section 73(1) of the said Act read with
Section 11A(4) of the Central Excise Act,1944 along-with appropriate Interest under Section 75 of
the said Act read with Section 11AA of the Central Excise Act,1944 & the Taxation and other laws
(Relaxation of Certain provisions) Ordinance, 2020 dated 31-03-2020, promulgated by the Hon’ble
President of India (hereinafter referred to as ‘ ordinance’).

03. RELEVANT STATUTORY PROVISIONS IN BRIEF:

03 (a). Section 65 of the Finance act, 1994 has been omitted vide Finance Act, 2012, w.e.f.
01.07.2012 inserting, inter-alia, new Sections 65B, 66B, 66D in the Finance Act, 1994. As per
Section 66B of the Finance Act, 1994,

“There shall be levied a tax (hereinafter referred to as Service Tax) at the rate of twelve percent on
the value of all services, other than those services specified in the negative list, provided or agreed
to be provided in the taxable territory by one person to another and collected in such manner as may
be prescribed.”
The rate of 12% have been amended from time to time.

Also w.e.f 15th November, 2015 Swaachh Bharat Cess @0.5% and .w.e.f. 1st June,2016 Krishi
Kalyan Cess@0.5% has also been imposed.
And the taxable services have been defined under Section 65B of the said Act and is not included in
the negative list of services as stipulated in Section 66D of the Finance Act,1994.

03 (b). As per section 67 of the said Act, the valuation of taxable services for charging service tax
has been stipulated and it has been held that service tax is payable on gross amount charged for
provision of such service provided or to be provided.

03 (c). In terms of Section 68 of the Act and Rule 6 of the Service Tax Rules,1994 (hereinafter
referred to as the said Rules) read with the Point of Taxation Rules, 2011 (with effect from 1.4.2011
vide Notification No. 18/2011-ST dated 01.03.2011), Service Tax shall be paid to the credit of the
Central Government by the 6th day of the month if duty is deposited electronically and 5th day of
the month in any other case, immediately following the calendar month in which the ‘services are
deemed to have been provided’. It has further been provided that the Service Tax payable for the
month of March, or the quarter ending 31st March, shall be paid to the credit of the Central
Government by the 31st day of March of the calendar year.
03 (d). Section 70 of the Finance Act,1994 stipulates as such “Furnishing of returns. — (1) Every
person liable to pay the service tax shall himself assess the tax due on the services provided by him
and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner
and at such frequency and with such late fee not exceeding twenty thousand rupees, for delayed
furnishing of return, as may be prescribed. (2) The person or class of persons notified under sub-
section (2) of section 69, shall furnish to the Superintendent of Central Excise, a return in such form
and in such manner and at such frequency as may be prescribed.”

03(e). Notification No. 25/2012-ST dated 20-06-2012 provides for exemption from payment of
service tax and 26/2012-ST dated 20-06-2012 extends abatement for some types/categories of
services provided by an tax payer.

03(f). Rule 3 of Point of Taxation Rules, 2011 reads as such

“Determination of point of Taxation:- For the purpose of these rules, unless otherwise provided,
‘point of taxation’ shall be,-
(a) The time when the invoice for the service provided is issued:
Provided that where the invoice is not issued within the time period specified in Rule 4A of
the Service Tax Rules, 1994, the point of taxation shall be the date of completion of
provision of the service.
(b) In a case, where the person providing the service, receives the payment before the time
specified in clause(a), the time, when he receives such payment, to the extent of such
payment.....”

03 (g). In terms of Sections 91 & 95 of the Finance Act, 2004 and Sections 136 &140 of the
Finance Act, 2007, Education Cess and Secondary & Higher Education Cess, at the appropriate rate
on the Service Tax payable, shall be paid to the credit of the Central Government.

03 (h). In terms of Sections 174 of the CGST Act, 2017, with effect from 01.07.2017, Chapter V of
the Finance Act, 1994 (containing the statutory provisions relating to Service Tax, as detailed
hereinabove), stood repealed although such act of repealing would not affect, inter alia, (i) the
previous operation of the amended Act or repealed Acts and orders or anything duly done or
suffered there under, (ii) any right, privilege, obligation, or liability acquired, accrued or incurred
under the amended Act or repealed Acts or orders under such repealed or amended Acts or (iii) any
investigation, inquiry, verification (including scrutiny & audit), assessment proceedings,
adjudication and any other legal proceedings or recovery of arrears or remedy.

03 (i). In terms of the provision of Section 6 of Chapter V of the Taxation and other laws
(Relaxation of Certain provisions), which deals with extension of time limit, promulgated by the
Hon’ble President of India vide Ordinance 2020, no. 2 of 2020 dated 31-03-2020 and published in
the Gazette of India by the Ministry of Law and Justice, it has been stipulated ‘that notwithstanding
anything contained in the Central Excise Act,..or Chapter V of the Finance Act,1994…..which falls
during the period from the 20th day of March, 2020 to the 29th day of June,2020 or …for
completion or compliance of such actions as completion of any proceeding or issuance of order,
notice…. shall, notwithstanding that completion or compliance has not been made within such time,
stand extended AND further extended to the 30th day of September, 2020 vide GSR 418E [FILE
NO. CBEC-20-06-08-2020-GST] DATED 27/06/2020.

4. INVOCATION OF EXTENDED PERIOD:

The self assessment scheme reposes immense faith on tax payer’s integrity by giving them
opportunity to take registration and to self assess the tax liability and make proper and timely
payment of tax and also to inform the Department by filing correct ST-3 Return. However, in the
instant case, it appears that the said tax payer has grossly belied, dishonoured AND misused the
faith reposed on them. The said tax payer did not pay the Service Tax though they were very much
aware that the service provided by them are taxable and they were required to pay Service Tax as
per provisions of Finance Act, 1994 & Service Tax Rules,1994. The said tax payer in the instant
case did not discharge their responsibility of payment of service tax. If the investigation against the
said tax payer was not initiated by the department, this non payment of service tax payable by them
would have remained undetected leading to loss of revenue to the government exchequer. In this
regard, it is relevant to mention here that the act of continued silence to the letters/E-
Mails/Reminders issued by the department/govt. addressed to the said tax payer and them not
furnishing the desired documents is an absolute testimony to the fact that the said tax payer has
been totally non co-operative and had acted with the sole intention to evade the payment of service
tax payable by them/him. Hence, it appears that for the issues of non payment pertaining to
mismatch of values of ST-3 returns (Annexure-C) with that of the amount received as per IT
return, the extended period of limitation under proviso to Section 78 of the Finance Act, 1994 read
with Section 11AC of the Central Excise Act,1944 & Ordinance, is invokable.
Thus, 4(i). For working out of suppressed Value of Taxable Service vis-a-vis evaded Service Tax
thereon for the period 2015-2016, 2016-17 & 2017-18 (For the period April 2017 to June 2017)
which the said tax payer /assessee did not furnish despite several requests from the department
mentioned in ANNEXURE-D attached to this Notice, Section 72 of the Finance Act, 1994 is
invokable.
4(ii). The amount of Service Tax Rs. 30,22,208/- ( Rs. 15,93,421 + Rs. 14,28,967) [Rupees Thirty
lakh twenty two thousand two hundred eight] only including Education Cess, Secondary &
Higher Education Cess, Swachha Bharat Cess and Krishi Kalyan Cess as were payable by the said
tax payer during the period from 2014-15 to 2017-18 (up to 30th June,’17) as calculated in
Annexure-A enclosed is therefore required to be demanded and recovered from them under the
proviso to Section 73(1) of the Finance Act, 1994 along with, as discussed above.

4.(iii) The assessee is also liable to pay interest on Rs. 30,22,208/- at appropriate interest in terms of
Section 75 of the Finance Act, 1994 read with applicable central excise sections and the ordinance.

4.(iv) The assessee is also liable to pay interest to the tune of Rs.24,147/- (Rupees Twenty Four
Thousand One Hundred Forty Seven) only for late payment of Service Tax for the Period from
October 2014 to March 2015 as payable at appropriate rate (24% per annum) in terms of Section 75
of the Finance Act, 1994 read with applicable central excise sections and the ordinance.
[Detailed calculation of interest is shown in Table -VI of the ANNEXURE-A attached]

4.(v) Penalty under Section 78 of the Finance Act, 1994 read with applicable Central Excise
Sections and Ordinance, is also liable to be imposed on the said tax payer for non-payment of
Service Tax by way of fraud and wilful suppression of facts with intent to evade payment of Service
Tax, as discussed elaborately hereinabove.

4.(vi) Penalty under Section 78A of the Finance Act, 1994 is also liable to be imposed on the
Director /Manager / Secretary of the said tax payer who at the time of such contravention was in
charge of, and was responsible to, the assessee for the conduct of its business and was knowingly
concerned with such non-payment of Service Tax by way of fraud and wilful suppression of facts
with intent to evade payment of Service Tax, as discussed elaborately hereinabove.

4.(vii) The assessee is also liable to a Penalty of Rs. 3,000/- (Rupees Fourteen Thousand One
Hundred) only under the provisions of Rule 7C of the Service tax Rules 1994 (as amended) for their
late filing of ST-3 Returns as detailed supra.
4(viii) The assessee is also liable to pay penalty under Section 77(1)(b) of the Finance Act, 1994 for
failing to maintain proper books of accounts during the FY 2014-15, FY 2015-16, FY 2016-17 &
2017-18 (up to 30/06/2017) with intent to evade payment of Service Tax, as discussed elaborately
hereinabove.

4(ix) The assessee is also liable to pay penalty under Section 77(1)(c)(i) & 77(1)(c)(ii) of the
Finance Act, 1994 for failure to furnish information or produce documents requested for with intent
to evade payment of Service Tax, as discussed elaborately hereinabove.

4(x) The assessee is also liable to pay penalty under Section 77(1)(d) of the Finance Act, 1994 read
with applicable provisions of Central Excise Act and Ordinance, for failure to pay due amount of
payable tax electronically during FY 2014-15, FY 2015-16, FY 2016-17 and FY 2017-18 (up to
30/06/2017) with intent to evade payment of Service Tax, as discussed elaborately hereinabove.

5. Therefore, the said tax payer having Service Tax Registration No AAECS6807QSD002, is
hereby called upon to show cause to the Joint Commissioner of CGST & Central Excise, Junglepu
Division, Haldia Commissionerate, having his office at 2 nd Floor, 9C, Esplanade Row (East) M.S.
Building, Custom House, 15/1, Strand Road, Kolkata - 700 001, West Bengal, within 30 (thirty)
days from the date of receipt of this notice as to why: -

(i) Section 72 of the Finance Act, 1994 shall not be invoked for working out of suppressed
Value of Taxable Service vis-a-vis evaded Service Tax thereon for the period 2015-2016, 2016-17
& 2017-18 (For the period April 2017 to June 2017) which the said tax payer /assessee did not
furnish despite several requests from the department mentioned in ANNEXURE-D attached to this
Notice ;

(i) Service Tax including Education Cess, S & H E Cess, S.B. Cess and K.K. Cess of Rs.
30,22,208/- ( Rs. 15,93,421 + Rs. 14,28,967) [Rupees Thirty lakh twenty two
thousand two hundred eight] only, as detailed in ANNEXURE-A, enclosed/attached
to this Notice shall not be demanded and recovered from the said tax payer in terms of
proviso to Section 73(1) of the Finance Act, 1994 read with Section 11A(4) of the
Central Excise Act,1944 & Ordinance ;
 (ii) Interest at an appropriate rate shall not be charged and recovered from them in terms of
Section 75 of the said Act read with Section 11AA of the Central Excise Act,1944 &
Ordinance ;
(iii) Penalty shall not be imposed upon them in terms of Section 78 of the said Act read with
Section 11AC of the Central Excise Act,1944 & Ordinance ;
(iv) Penalty under Section 78A of the Finance Act, 1994 shall not be imposed on the Director
/Manager / Secretary of the said tax payer who at the time of such contravention was in charge of,
and was responsible to, the assessee for the conduct of its business and was knowingly concerned
with such non-payment of Service Tax by way of fraud and wilful suppression of facts with intent
to evade payment of Service Tax, as discussed elaborately hereinabove.

(v) Late Fee to the tune of Rs. 3000/- (Rupees three Thousand) only shall not be
recovered in terms of Section 70 of the said Act read with Rule 7C of Service tax Rules
1994;
(vi) Short paid amount of interest to the tune of Rs.24,147/- as detailed in Table VI of
ANNEXURE-A shall not be charged and realised from them in terms of Section 75 of the said
Act read with Section 11AA of the Central Excise Act,1944 & Ordinance shall not be charged on
the Service Tax paid for the period of late payment of Service Tax for the Period from October
2014 to March 2015.

(vii) A penalty shall not be imposed and realised from the assessee for their failure to maintain
proper books of accounts and payment of appropriate Service Tax in contravention of the
Provisions of Financial Act 1994, & Rules made thereunder and also for their failure to furnish
information or produce called for documents in terms of Section 77(1)(b), Section 77(1)(c)(i),
Section 77(1)(c)(ii) & 77(1)(d)of the Finance Act 1994.

6. The provision of Section 174(2) of the Central Goods and Services Act, 2017 provide that in
spite of repeal of Central Excise Act, 1944, the enquiry, investigation, demand, assessment,
adjudication etc. under the Central Excise Act, 1944 are not affected and the relevant provisions
shall be enforced as if the said Act had not been repealed.

7. The provision of Section 6 of Chapter V of the Taxation and other laws (Relaxation of
certain provisions), which deals with extension of time limit, promulgated by the Hon’ble President
of India vide Ordinance 2020, no. 2 of 2020 dated 31-03-2020 [Read with GSR 418E [FILE NO.
CBEC-20-06-08-2020-GST] DATED 27/06/2020] and published in the Gazette of India by the
Ministry of Law and Justice, stipulates ‘that notwithstanding anything contained in the Central
Excise Act,..or Chapter V of the Finance Act,1994…..which falls during the period from the 20th
day of March, 2020 to the 29th day of June,2020 or …for completion or compliance of such actions
as completion of any proceeding or issuance of order, notice…. shall, notwithstanding that
completion or compliance has not been made within such time, stand extended AND further
extended to the 30th day of September, 2020 vide GSR 418E [FILE NO. CBEC-20-06-08-
2020-GST] DATED 27/06/2020...’ .
8. The said tax payer is required to produce at the time of showing cause all the evidences upon
which they intend to rely in support of their defence. They are also required to indicate in writing
whether they would like to be heard in person or through their authorized representative before the
case is adjudicated.

9. If no cause is shown against the action proposed to be taken within the stipulated period as
mentioned above and/or the said tax payer do not appear before the adjudicating authority when the
case would be posted for hearing, the case will be decided ex parte on the basis of whatever
documents / evidences / information available with the department without making further reference
to them.

10. This notice is issued without prejudice to any other action/actions that may be initiated
against the said tax payer for the same period(s) under the said Act/said rules &/or any other law for
the time being in force in the Republic of India.

11. This department reserves the right to amend, modify or supplement this notice on the basis of
further evidence, if any available or comes to surface, prior to the adjudication of the instant case.
Enclo: Annexure-A to E
Joint Commissioner (In-Situ),
Central Tax & CX.,
Junglepur Division, Haldia Commissionerate.
 GOVERNMENT OF INDIA
OFFICE OF THE JOINT COMMISSIONER OF CENTRAL TAX
HALDIA CGST & CX COMMISSIONERATE
2ND FLOOR, 9C, ESPLANADE ROW (East), KOLKATA-700 069

C. No. Date :

To
M/s Lords Vanijya Private Limited.
Vill & Post.- Kolora, Jalan Industrial Complex,
Gate No.-3, Lane-7 (R), Dist.- Howrah,
West Bengal- 711411
REGISTERED OFFICE
227/1b, a. J. C. Bose Road,
3rd Floor,
Kolkata- 700 020

NOTICE TO SHOW CAUSE CUM DEMAND

Whereas it appears that M/s Lords Vanijya Pvt. Ltd., Vill & Po.- Kolora, Jalan
Industrial complex, Gate No. -3, Lane-7(R ) , Dist.- Howrah, West Bengal- 711411
( Registered office at 227/1B, A. J. C. Bose Road, 3 rd Floor, Kolkata- 700 020) having PAN
based Service Tax Registration No. AABCL4628DST001 ( hereinafter referred to as ‘the
said assessee’) have contravened the provisions of Section 65B, 66B, 67 and 68 of the Finance
Act, 1994 (hereinafter referred to as “the said Act”) read with Rule 6 of the Service Tax Rules, 1994
and Point of Taxation Rules, 2011 (hereinafter referred to as “the said POT Rules”), in as much as
the said Tax Payer, have not discharged their Service Tax liability (including E. Cess, S&HE Cess,
S.B. Cess and K.K. Cess) to the tune of Rs. ----------/- (Rupees ----------) only on the values of
Taxable Services, namely Contractor, Maintenance or Repair Service, Security/detective
agency service, Business auxiliary service, for the financial year 2014-15 to 2017-18 (Up to June
2017) mis-declaring and suppressing the material facts from the department (as detailed hereinafter)
with clear intention to evade payment of the said amount of Service Tax. Therefore, Service Tax to
the tune of Rs. 30,22,208/- (Rupees Thirty lakh twenty two thousand two hundred eight) only
is recoverable from them along-with appropriate Interest and for such omission and commission
with an intent to evade payment of Service Tax, the said taxpayer is also liable to penalty.

3. Brief facts of the case:

On analysis of the Income Tax Returns / FORM 26AS data for the financial year 2014-15 /
(AY 2015-16) as shared by the CBDT [Ref. ANNEXURE-B] with a view to identify possible
leakage of Service tax revenues for some of the taxpayers registered with the service tax department
for providing taxable services, it was observed that the turnover on account of services declared in
the ITR as appear in the Third Party ITR/TDS data received from CBDT did not match with the
values declared in the corresponding Service Tax ST-3 Returns filed for the respective F. Y. (2014-
15) (Ref: Annexure-C). Accordingly, it was held that an investigation was required to be
conducted upon those tax payers to ascertain and examine the reason of discrepancy in terms of
turnover / value of taxable service as declared by them. From the list, it was observed that for the
Financial Year 2014-15 / A.Y. 2015-16, there is a mismatch of figures / values on account of
services provided by them as per the ITR / TDS data vis a vis the value declared in the
corresponding Service Tax ST-3 Returns of that F.Y.
Accordingly, the said taxpayer was requested to submit their complete Income Tax Returns
including FORM 3CD, 194C,194H, 194I, 194J & 26AS time and again.

Chronology of Facts:
(5) On 22.01.2020, the assessee was requested to furnish their reply / clarification along with
copies of complete Income Tax Return along with Form 3CB/3CD AND all particulars
submitted to Income Tax Department regarding TDS of their business concern vide office
Letter issued under C. No. V(30)02/Third Party/R-III/JPD/2019/264 dated 22.01.2020
through Speed Post;
(6) On 15.08.2020, an email was sent reminding the assessee to furnish their reply to the earlier
letter dated 22.01.2020 and therein the assessee was also requested to furnish the following
documents, namely – Income Tax Returns (including Form 3CB/D, 194C, 194H, 194I,
194J & 26AS) for the F.Y. 2014-15, 2015-16, 2016-17, AND data of Income Tax Returns
(including Form 3CB/D, 194C, 194H, 194I, 194J & 26AS) for the period April 2017 to
June 2017;
(7) On 20.08.2020, the taxpayer was again reminded and requested (through email) to furnish
the sought for documents and it was also mentioned for the taxpayers attention that if they
fail to furnish the documents sought for, the department would be bound to contemplate all
 statutory measures to protect revenue on the basis of whatever documents / records / data /
information available with the department.
(8) On 24.08.2020, The assessee/taxpayer was requested to furnish their comments on a
tentative figure of payable service tax worked out by taking a 20% Year-on-Year increase.
However, the assessee did not respond at all. On subsequent thorough scrutiny, it was
observed that the assessee has themselves declared a certain growth in their value of taxable
Services declared in the ST3 Returns. So, it was deemed that the said year-on-year increase
as was already declared by the assessee in their ST3 Returns is more appropriate as an year-
on-year multiplier to work out the figures of payable service tax in terms of Section 72
(Best judgement assessment) of the said ACT. Accordingly, recoverable amount of
Service Tax has been worked-out taking the Third Party data as base figure for the Financial
Year 2014-15 and the recoverable amounts for the respective remaining Financial Years
have been worked-out applying the year-on-year ratio of increase reflected in figures of ST-
3 Returns of the respective Financial Year 2015-2016, 2016-17 & 2017-18 (For the period
April 2017 to June 2017) as under :

Total Value of Taxable Service declared in ITR (P&L A/c) of 2014-15 (as per Third Party data)
= Rs. 7,08,79,420/- which is higher than Rs. 6,84,07,392/- (given in ST-3 of 2014-15) by
Rs. 24,72,028/-
Total Value of Taxable Service declared in ST-3 of 2014-15 = (Rs. 3,22,71,327 + Rs. 3,61,36,065)
=Rs.6,84,07,392/-
Total Value of Taxable Service declared in ST-3 of 2015-16 = (Rs. 2,77,79,519 + Rs. 5,19,31,510)
= Rs.7,97,11,029/-
Total Value of Taxable Service declared in ST-3 of 2016-17 = (Rs. 6,03,44,127 + Rs 6,55,55,127)
= Rs.12,58,99,254/-
Total Value of Taxable Service declared in ST-3 of 2017-18 (April 2017 to June 2017)
= Rs. 3,46,06,355/-
= 3,46,06,355 X4 (If annualised)
= 13,84,25,420/- (For full Year)

From the above values of taxable service as reported in the ITR of Financial Year 2014-15 and the
values of taxable services as reported in the ST-3 Returns for the Financial years 2014-15, 2015-16,
2016-17 & 2017-18 (Up to June 2017), two things transpire crystal clear that –
Firstly, the assessee has not reflected / accounted for their true & correct value of taxable service in
their ST-3 Returns submitted to the Service Tax Department for the Financial Year 2014-15 & a
portion of taxable values kept suppressed from the Service Tax Department as is evident from the
bare fact that amount of taxable value declared in ITR ( Rs. 7,08,79,420/-) is substantially higher
than the Total amount of taxable value ( Rs. 6,84,07,392/) declared in the two ST-3 Returns
submitted for 2014-15 and
Secondly, there is a year-on-year incremental growth in values of taxable services as declared in
ST-3 Returns submitted for the period from (2013-14), 2014-15, 2015-16, 2016-17 & 2017-18 (For
the period from April 2017 to June 2017).
So, the quantum of suppressed part of taxable values cannot be without having any bearing with the
incremental growth ratio/rate/percentage reflected in ST-3 Returns of the respective Financial
Years.
So, it would be quite logical & rational to apply Best judgment principle in terms of Section 72
of Finance Act, 1994 taking the year-on-year growth ratio as reflected in the ST-3 Returns of the
respective Financial Years as a cue or yard stick or multiplier factor to work out the possible taxable
values of the respective ITR(s) and, thereby, to quantify the suppressed amount of values of taxable
service and the evaded amount of Service Tax involved therein for the period with effect from
Financial Year 2014-15 to 2017-18 (Up to June 2017) in the instant case where the assessee has not
furnished any copy of their ITRs in spite of repeated requests from the department.

Thus,
Worked-out Value of Taxable Service in ITR for the F.Y. 2015-16 would be
= Rs. [7,08,79,420 x 7,97,11,029 / 6,84,07,392] = Rs. 8,25,91,535/-
[Differential Value = (Rs. 8,25,91,535 – Rs. 7,97,11,029) = Rs. 28,80,506/-]

Worked-out Value of Taxable Service in ITR for the F.Y. 2016-17 would be
= Rs. [8,25,91,535 x 12,58,99,254/7,97,11,029] = Rs. 13,04,48,857/-
[Differential Value = (Rs. 13,04,48,857 – Rs. 12,58,99,254) = Rs. 45,49,603/-]
&
Worked-out Value of Taxable Service in ITR for the F.Y. 2017-18 (April 2017 to June 2017)
would be = Rs. [13,04,48,857 x 3,46,06,355x4/12,58,99,254] /4 = Rs. 3,58,56,920/-
[Differential Value = ( Rs. 3,58,56,920 – Rs. 3,46,06,355) = Rs. 12,50,565/-]

Thereby, the said tax payer /assessee appears to be liable to pay Service Tax (including all Cesses)
to the tune of Rs. 15,93,241/- (Rs. Fifteen lakh ninety three thousand two hundred forty one ) only
alonwith appropriate interest and penalty. [Detailed Calculation of Taxable values has been
shown in the ANNEXURE-A attached / enclosed with this Notice]
The said tax payer /assessee was requested time and again to furnish copies of their Income Tax
Returns through sending letter and emails to which the assessee did not respond. To invite the
assessee’s attention to emails, SMS was also sent to the mobile No. available in the Third Party
Data. But, in spite of all efforts to persuade the assessee they did not respond. Thus, non-submission
of any reply / response to official correspondences appears to be deliberate and conscious on the
part of the assessee.
[All correspondences & emails referred as ANNEXURE-D attached to this Notice].

LATE FILING OF ST-3 RETURN:

Now, further study / examination of the said ST-3 Returns reveals that the ST 3 Return for the
Period October 2014 to March 2015 was filed on 09-06-2015, instead of 25.04.2015 i.e. after 45
days from the due date and the ST 3 Return for the Period April 2017 to June 2017 on 25-08-2017
instead of 15-08-2017 i.e. after 10 days from the due date. The assessee is, therefore, liable to pay
a penalty / late of Rs. 3,000/- (Rs.2500+Rs.500) for the said late filing of the said ST-3 Returns.

PAYMENT CHALLANS DOES NOT EXISTS/MATCH/TALLY WITH THE NSDL:

It appears from the ST3 Returns available on the Portal that the following payment Challans of the
assessee pertaining to ST-3 Return for the period from October 2016 to March 2017 does not
match/exist. The portal has listed those 3 challans with observation as under:
(4) The Challan Number { 00053470703201775296 } for {Rs.368410/-} in H1 section does not exist and/or is not
matching with the Registration Number available in the database.
(5) The Challan Number { 00053470703201775296 } for {Rs.599016/-} in H1 section does not exist and/or is not
matching with the Registration Number available in the database.
(6) The Challan Number { 00053472604201745862 } for {Rs.461541/-} in H1 section does not exist and/or is not
matching with the Registration Number available in the database.
The said tax payer /assessee is, therefore, liable to pay a total an amount of Rs.14,28,967/-
[Rs.368410+ Rs.599016+ RS.461541 = Rs.14,28,967/-] (Rupees Fourteen lakh twenty eight
thousand nine hundred sixty seven) only along with appropriate interest and penalty.

However, it may be reiterated once more that the assessee has not furnished any reply to office
letter and reminders emails issued to them from the Office of the Superintendent, CGST&CX,
Range-III, Junglepur Division of Haldia Commissionerate and did not respond at all though all the
reminder emails have been sent to the registered mail id recorded in Form ST-1 of the assessee
(Annexure – E) and were duly delivered to them.
Therefore, the assessee appear to have evaded an amount of Service Tax (including Cesses) to the
tune of Rs. 30,22,208/- ( Rs. 15,93,421 + Rs. 14,28,967) [Rupees Thirty lakh twenty two
thousand two hundred eight] only as detailed in ANNEXURE-D attached/enclosed with this
notice in contravention of the provisions of Section 65B, 66B, 67, 68(1) and 70 of the Finance Act,
1994 read with Rule 6 & 7 of the Service Tax Rules, 1994 and POT Rules and therefore is
demandable and recoverable from them under proviso to Section 73(1) of the said Act read with
Section 11A(4) of the Central Excise Act,1944 along-with appropriate Interest under Section 75 of
the said Act read with Section 11AA of the Central Excise Act,1944 & the Taxation and other laws
(Relaxation of Certain provisions) Ordinance, 2020 dated 31-03-2020, promulgated by the Hon’ble
President of India (hereinafter referred to as ‘ ordinance’).

03. RELEVANT STATUTORY PROVISIONS IN BRIEF:

03 (a). Section 65 of the Finance act, 1994 has been omitted vide Finance Act, 2012, w.e.f.
01.07.2012 inserting, inter-alia, new Sections 65B, 66B, 66D in the Finance Act, 1994. As per
Section 66B of the Finance Act, 1994,

“There shall be levied a tax (hereinafter referred to as Service Tax) at the rate of twelve percent on
the value of all services, other than those services specified in the negative list, provided or agreed
to be provided in the taxable territory by one person to another and collected in such manner as may
be prescribed.”
The rate of 12% have been amended from time to time.

Also w.e.f 15th November, 2015 Swaachh Bharat Cess @0.5% and .w.e.f. 1st June,2016 Krishi
Kalyan Cess@0.5% has also been imposed.
And the taxable services have been defined under Section 65B of the said Act and is not included in
the negative list of services as stipulated in Section 66D of the Finance Act,1994.

03 (b). As per section 67 of the said Act, the valuation of taxable services for charging service tax
has been stipulated and it has been held that service tax is payable on gross amount charged for
provision of such service provided or to be provided.

03 (c). In terms of Section 68 of the Act and Rule 6 of the Service Tax Rules,1994 (hereinafter
referred to as the said Rules) read with the Point of Taxation Rules, 2011 (with effect from 1.4.2011
vide Notification No. 18/2011-ST dated 01.03.2011), Service Tax shall be paid to the credit of the
Central Government by the 6th day of the month if duty is deposited electronically and 5th day of
the month in any other case, immediately following the calendar month in which the ‘services are
deemed to have been provided’. It has further been provided that the Service Tax payable for the
month of March, or the quarter ending 31st March, shall be paid to the credit of the Central
Government by the 31st day of March of the calendar year.

03 (d). Section 70 of the Finance Act,1994 stipulates as such “Furnishing of returns. — (1) Every
person liable to pay the service tax shall himself assess the tax due on the services provided by him
and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner
and at such frequency and with such late fee not exceeding twenty thousand rupees, for delayed
furnishing of return, as may be prescribed. (2) The person or class of persons notified under sub-
section (2) of section 69, shall furnish to the Superintendent of Central Excise, a return in such form
and in such manner and at such frequency as may be prescribed.”

03(e). Notification No. 25/2012-ST dated 20-06-2012 provides for exemption from payment of
service tax and 26/2012-ST dated 20-06-2012 extends abatement for some types/categories of
services provided by an tax payer.

03(f). Rule 3 of Point of Taxation Rules, 2011 reads as such

“Determination of point of Taxation:- For the purpose of these rules, unless otherwise provided,
‘point of taxation’ shall be,-
(c) The time when the invoice for the service provided is issued:
Provided that where the invoice is not issued within the time period specified in Rule 4A of
the Service Tax Rules, 1994, the point of taxation shall be the date of completion of
provision of the service.
(d) In a case, where the person providing the service, receives the payment before the time
specified in clause(a), the time, when he receives such payment, to the extent of such
payment.....”

03 (g). In terms of Sections 91 & 95 of the Finance Act, 2004 and Sections 136 &140 of the
Finance Act, 2007, Education Cess and Secondary & Higher Education Cess, at the appropriate rate
on the Service Tax payable, shall be paid to the credit of the Central Government.

03 (h). In terms of Sections 174 of the CGST Act, 2017, with effect from 01.07.2017, Chapter V of
the Finance Act, 1994 (containing the statutory provisions relating to Service Tax, as detailed
hereinabove), stood repealed although such act of repealing would not affect, inter alia, (i) the
previous operation of the amended Act or repealed Acts and orders or anything duly done or
suffered there under, (ii) any right, privilege, obligation, or liability acquired, accrued or incurred
under the amended Act or repealed Acts or orders under such repealed or amended Acts or (iii) any
investigation, inquiry, verification (including scrutiny & audit), assessment proceedings,
adjudication and any other legal proceedings or recovery of arrears or remedy.

03 (i). In terms of the provision of Section 6 of Chapter V of the Taxation and other laws
(Relaxation of Certain provisions), which deals with extension of time limit, promulgated by the
Hon’ble President of India vide Ordinance 2020, no. 2 of 2020 dated 31-03-2020 and published in
the Gazette of India by the Ministry of Law and Justice, it has been stipulated ‘that notwithstanding
anything contained in the Central Excise Act,..or Chapter V of the Finance Act,1994…..which falls
during the period from the 20th day of March, 2020 to the 29th day of June,2020 or …for
completion or compliance of such actions as completion of any proceeding or issuance of order,
notice…. shall, notwithstanding that completion or compliance has not been made within such time,
stand extended AND further extended to the 30th day of September, 2020 vide GSR 418E [FILE
NO. CBEC-20-06-08-2020-GST] DATED 27/06/2020.

4. INVOCATION OF EXTENDED PERIOD:

The self assessment scheme reposes immense faith on tax payer’s integrity by giving them
opportunity to take registration and to self assess the tax liability and make proper and timely
payment of tax and also to inform the Department by filing correct ST-3 Return. However, in the
instant case, it appears that the said tax payer has grossly belied, dishonoured AND misused the
faith reposed on them. The said tax payer did not pay the Service Tax though they were very much
aware that the service provided by them are taxable and they were required to pay Service Tax as
per provisions of Finance Act, 1994 & Service Tax Rules,1994. The said tax payer in the instant
case did not discharge their responsibility of payment of service tax. If the investigation against the
said tax payer was not initiated by the department, this non payment of service tax payable by them
would have remained undetected leading to loss of revenue to the government exchequer. In this
regard, it is relevant to mention here that the act of continued silence to the letters/E-
Mails/Reminders issued by the department/govt. addressed to the said tax payer and them not
furnishing the desired documents is an absolute testimony to the fact that the said tax payer has
been totally non co-operative and had acted with the sole intention to evade the payment of service
tax payable by them/him. Hence, it appears that for the issues of non payment pertaining to
mismatch of values of ST-3 returns (Annexure-C) with that of the amount received as per IT
return, the extended period of limitation under proviso to Section 78 of the Finance Act, 1994 read
with Section 11AC of the Central Excise Act,1944 & Ordinance, is invokable.

Thus, 4(i). For working out of suppressed Value of Taxable Service vis-a-vis evaded Service Tax
thereon for the period 2015-2016, 2016-17 & 2017-18 (For the period April 2017 to June 2017)
which the said tax payer /assessee did not furnish despite several requests from the department
mentioned in ANNEXURE-D attached to this Notice, Section 72 of the Finance Act, 1994 is
invokable.
4(ii). The amount of Service Tax Rs. 30,22,208/- ( Rs. 15,93,421 + Rs. 14,28,967) [Rupees Thirty
lakh twenty two thousand two hundred eight] only including Education Cess, Secondary &
Higher Education Cess, Swachha Bharat Cess and Krishi Kalyan Cess as were payable by the said
tax payer during the period from 2014-15 to 2017-18 (up to 30th June,’17) as calculated in
Annexure-A enclosed is therefore required to be demanded and recovered from them under the
proviso to Section 73(1) of the Finance Act, 1994 along with, as discussed above.

4.(iii) The assessee is also liable to pay interest on Rs. 30,22,208/- at appropriate interest in terms of
Section 75 of the Finance Act, 1994 read with applicable central excise sections and the ordinance.

4.(iv) The assessee is also liable to pay interest to the tune of Rs.24,147/- (Rupees Twenty Four
Thousand One Hundred Forty Seven) only for late payment of Service Tax for the Period from
October 2014 to March 2015 as payable at appropriate rate (24% per annum) in terms of Section 75
of the Finance Act, 1994 read with applicable central excise sections and the ordinance.
[Detailed calculation of interest is shown in Table -VI of the ANNEXURE-A attached]

4.(v) Penalty under Section 78 of the Finance Act, 1994 read with applicable Central Excise
Sections and Ordinance, is also liable to be imposed on the said tax payer for non-payment of
Service Tax by way of fraud and wilful suppression of facts with intent to evade payment of Service
Tax, as discussed elaborately hereinabove.

4.(vi) Penalty under Section 78A of the Finance Act, 1994 is also liable to be imposed on the
Director /Manager / Secretary of the said tax payer who at the time of such contravention was in
charge of, and was responsible to, the assessee for the conduct of its business and was knowingly
concerned with such non-payment of Service Tax by way of fraud and wilful suppression of facts
with intent to evade payment of Service Tax, as discussed elaborately hereinabove.
4.(vii) The assessee is also liable to a Penalty of Rs. 3,000/- (Rupees Fourteen Thousand One
Hundred) only under the provisions of Rule 7C of the Service tax Rules 1994 (as amended) for their
late filing of ST-3 Returns as detailed supra.

4(viii) The assessee is also liable to pay penalty under Section 77(1)(b) of the Finance Act, 1994 for
failing to maintain proper books of accounts during the FY 2014-15, FY 2015-16, FY 2016-17 &
2017-18 (up to 30/06/2017) with intent to evade payment of Service Tax, as discussed elaborately
hereinabove.

4(ix) The assessee is also liable to pay penalty under Section 77(1)(c)(i) & 77(1)(c)(ii) of the
Finance Act, 1994 for failure to furnish information or produce documents requested for with intent
to evade payment of Service Tax, as discussed elaborately hereinabove.

4(x) The assessee is also liable to pay penalty under Section 77(1)(d) of the Finance Act, 1994 read
with applicable provisions of Central Excise Act and Ordinance, for failure to pay due amount of
payable tax electronically during FY 2014-15, FY 2015-16, FY 2016-17 and FY 2017-18 (up to
30/06/2017) with intent to evade payment of Service Tax, as discussed elaborately hereinabove.

6. Therefore, the said tax payer having Service Tax Registration No AAECS6807QSD002, is
hereby called upon to show cause to the Joint Commissioner of CGST & Central Excise, Junglepu
Division, Haldia Commissionerate, having his office at 2 nd Floor, 9C, Esplanade Row (East) M.S.
Building, Custom House, 15/1, Strand Road, Kolkata - 700 001, West Bengal, within 30 (thirty)
days from the date of receipt of this notice as to why: -

(i) Section 72 of the Finance Act, 1994 shall not be invoked for working out of suppressed
Value of Taxable Service vis-a-vis evaded Service Tax thereon for the period 2015-2016, 2016-17
& 2017-18 (For the period April 2017 to June 2017) which the said tax payer /assessee did not
furnish despite several requests from the department mentioned in ANNEXURE-D attached to this
Notice ;

(i) Service Tax including Education Cess, S & H E Cess, S.B. Cess and K.K. Cess of Rs.
30,22,208/- ( Rs. 15,93,421 + Rs. 14,28,967) [Rupees Thirty lakh twenty two
thousand two hundred eight] only, as detailed in ANNEXURE-A, enclosed/attached
to this Notice shall not be demanded and recovered from the said tax payer in terms of
 proviso to Section 73(1) of the Finance Act, 1994 read with Section 11A(4) of the
Central Excise Act,1944 & Ordinance ;
(ii) Interest at an appropriate rate shall not be charged and recovered from them in terms of
Section 75 of the said Act read with Section 11AA of the Central Excise Act,1944 &
Ordinance ;
(viii) Penalty shall not be imposed upon them in terms of Section 78 of the said Act read with
Section 11AC of the Central Excise Act,1944 & Ordinance ;
(ix) Penalty under Section 78A of the Finance Act, 1994 shall not be imposed on the Director
/Manager / Secretary of the said tax payer who at the time of such contravention was in charge of,
and was responsible to, the assessee for the conduct of its business and was knowingly concerned
with such non-payment of Service Tax by way of fraud and wilful suppression of facts with intent
to evade payment of Service Tax, as discussed elaborately hereinabove.

(x) Late Fee to the tune of Rs. 3000/- (Rupees three Thousand) only shall not be
recovered in terms of Section 70 of the said Act read with Rule 7C of Service tax Rules
1994;
(xi) Short paid amount of interest to the tune of Rs.24,147/- as detailed in Table VI of
ANNEXURE-A shall not be charged and realised from them in terms of Section 75 of the said
Act read with Section 11AA of the Central Excise Act,1944 & Ordinance shall not be charged on
the Service Tax paid for the period of late payment of Service Tax for the Period from October
2014 to March 2015.

(xii) A penalty shall not be imposed and realised from the assessee for their failure to maintain
proper books of accounts and payment of appropriate Service Tax in contravention of the
Provisions of Financial Act 1994, & Rules made thereunder and also for their failure to furnish
information or produce called for documents in terms of Section 77(1)(b), Section 77(1)(c)(i),
Section 77(1)(c)(ii) & 77(1)(d)of the Finance Act 1994.

7. The provision of Section 174(2) of the Central Goods and Services Act, 2017 provide that in
spite of repeal of Central Excise Act, 1944, the enquiry, investigation, demand, assessment,
adjudication etc. under the Central Excise Act, 1944 are not affected and the relevant provisions
shall be enforced as if the said Act had not been repealed.
9. The provision of Section 6 of Chapter V of the Taxation and other laws (Relaxation of
certain provisions), which deals with extension of time limit, promulgated by the Hon’ble President
of India vide Ordinance 2020, no. 2 of 2020 dated 31-03-2020 [Read with GSR 418E [FILE NO.
CBEC-20-06-08-2020-GST] DATED 27/06/2020] and published in the Gazette of India by the
Ministry of Law and Justice, stipulates ‘that notwithstanding anything contained in the Central
Excise Act,..or Chapter V of the Finance Act,1994…..which falls during the period from the 20th
day of March, 2020 to the 29th day of June,2020 or …for completion or compliance of such actions
as completion of any proceeding or issuance of order, notice…. shall, notwithstanding that
completion or compliance has not been made within such time, stand extended AND further
extended to the 30th day of September, 2020 vide GSR 418E [FILE NO. CBEC-20-06-08-
2020-GST] DATED 27/06/2020...’ .
10. The said tax payer is required to produce at the time of showing cause all the evidences upon
which they intend to rely in support of their defence. They are also required to indicate in writing
whether they would like to be heard in person or through their authorized representative before the
case is adjudicated.

12. If no cause is shown against the action proposed to be taken within the stipulated period as
mentioned above and/or the said tax payer do not appear before the adjudicating authority when the
case would be posted for hearing, the case will be decided ex parte on the basis of whatever
documents / evidences / information available with the department without making further reference
to them.

13. This notice is issued without prejudice to any other action/actions that may be initiated
against the said tax payer for the same period(s) under the said Act/said rules &/or any other law for
the time being in force in the Republic of India.

14. This department reserves the right to amend, modify or supplement this notice on the basis of
further evidence, if any available or comes to surface, prior to the adjudication of the instant case.
Enclo: Annexure-A to E
Joint Commissioner (In-Situ),
Central Tax & CX.,
Junglepur Division, Haldia Commissionerate.