CENTRAL

OFFICE OF THE COMMISSIONER EXCISE & sERVICE TAX COMMISSIONERATE 7-A, ASHOK MARG, LUCKNOW /

C. No.: V(30)Adj'/LkoIl06/2013

b~'\ -,

~(?CA.\u... ~
fc\~fc,?

Dated: 25.06.2013

'?- \

SHOW CAUSE NOTICE I STATEMENT To, M/s International Transformers Kanpur Road (Near Airport), P.O. Manasnagar, Luck now-226023. (P) Ltd.,

NO. : 23/.cOMMR.ILKO/ST/2013-14

In terms of Section 73 (lA) of the Finance Act, 1994, this Show Cause Notice is issued to M/s International Transformers (P) Ltd., Kanpur Road, p.a. Manasnagar, Lucknow, (hereinafter dated

referred to as the vNoticee") in continuation of the earlier SCN No. 37/Commr./Lko/ST/2011-12

14.10.2011, for the period F. Y. 2011-12 and April, 2012 to June, 2012, as the grounds relied upon in the instant Notice are the same as mentioned in the earlier Show Cause Notice referred supra. 2. Whereas in reply to the letters C.No. 50-ST/INV./lntert.Transf./Gr-VIII/Lko-I/10-11/2126 even no. 3981 dated 19.12..201) & even no.1632 dated 22._03.2013, the Noticee

dated 13.0720J2,

vide their letter dated 22.05.2013 & 12.06.2013 (RUD - 1 & 2), furnished the cost of material used in repair and maintenance of the transformer which has not been included by them in the taxable value reflected in the ST-3 Returns submitted for the year 2011-12 and April, 2012 to June, 2012 (RUD -3, 4 & 5). On the basis of the information furnished by the Noticee, their tax liability is computed

hereunder as per the statement given below :(Amt. in Rs.) Service Service Tax in r/o Tax short Maintena paid (Col. No. nee or 6-7) Repair Service paid as per ST-3 7 447533 69726 517259 8 14522866 2267663 16790529

Year

Rate of Applicabl e Service Tax

Cost of material used in repair excluding VAT

Labour Charges Charged

Value of Taxable Service on which service tax should be paid 5 (3+4) 145343677 18910913 164254590

Total Service Tax due on amount mentioned at Col. No. 5 6 14970399 2337389 17307788

1 FY 2011-12 Apr.12 to Jun.12 Total

2 10.30% 12.36%

3 140998711 18346793 159345504

4 4344966 564120 4909086

The Noticee by not including the value of the

of material in their taxable value, as

required under provision of Section 67 of the Finance Act, 994 have failed to assess their tax liability correctly under provision of Section 68 of the Act, and ha amounting to Rs. 16790529/-. They are thus liable for thus intently evaded their tax liability
r

under Section 78. As they have not

discharged their tax liability within prescribed time, they are also liable to penalty under Section 76 of the Act. 4. Therefore, M/s International Transformers (P) Ltd., Kanpur Road, P.O. Manasnagar, Central Excise &

Lucknow-226023,

are hereby called upon to Show Cause to the Commissioner,

Service Tax, 7-A, Ashok Marg, Hazratganj, notice, as to why:1.

Lucknow-226001, within 30 days of the receipt of the

Service Tax amounting to Rs. 1,67,90,529/- (Rupees One Crore Sixty Seven Lakhs Ninety Thousand Five Hundred & Twenty Nine Only) not paid by them should not be demanded and recovered from them under provision of Section 73 (1) of the Finance Act, 1994. Interest at appropriate rate should not be charged and recovered from them under Section 75 of Finance Act, 1994 for non-payment of service tax by due dates. Penalty should not be imposed upon them under Section 76 of the Finance Act, 1994. Penalty should not be imposed upon them under Section 78 of the Finance Act, 1994. They are further directed to produce at the time of showing cause all the evidences oral &

2.

3. 4.

documentary, upon which they intend to rely upon in support of their defense. They may specify in their defense reply as to whether they would like to be heard in person before the adjudicating authority before the case is decided. If no such specific mention is made in their written replies, it shall be presumed that they do not desire any personal hearing . If they do not show cause against the action proposed

III

this notice in writing within

stipulated period of 30 days and if they or their authorized representative does not appear before the adjudicating authority on the date and time fixed for personal hearing, the case shall be liable to be disposed off ex-parte on the basis of evidence brought on record, without making any further reference to them. This show cause notice issued without prejudice to any other action that may be

IS

contemplated against them in pursuance of Service Tax Act and Rules made hereunder or any other law for the time being in forced and relevant in the matter.

Relied Upon Documents: 1. 2. Information submitted by Mls ~ Int. Transformers

& 2).

. dated 22.05.2013, 12.06.2013 (RUD - 1 (RUD - 3, 4 & 5).

ST-3 Return for the year FY 2011-12 and April, 2012 to June, 2012

(HIMANSHU GUPTA) COMMISSIONER CENTRAL EXCISE & SERVICE TAX LUCKNOW

\1~0'11t \''0~

Copy forwarded for information and necessary action to: 1. The Assistant Commissioner (Service Tax), Division-I Lucknow along with original copy of Show Cause Notice meant for the Noticee with request to get it served upon the Noticee and submits the dated acknowledgement 2. 3: to this office for record.

The Superintendent (Service Tax), Group-VIII, Division-I Lucknow. Guard File.

~UPERINTEN CE;:P ,

~~ . g',~~VICE KNOW

TAX