• Challenge of demand order w.r.t. Govt Work contracts (civil)

Our firm is a registered partnership firm under service Tax as Civil Contractor providing Work contract Services for construction of residential complexes to Greater Noida Authority and Housing Board Haryana. The work contracts in Greater Noida consisted of construction of Row Houses and in Housing Board consisted of construction of EWS Flats.
A show cause Notice was issued to our firm w.r.t. above said works in Feb 2015 asking for a demand of over Rs 4.8 Cr. i.e around 2.40Cr for GNOIDA and 2.40 Cr for HBH. Out of 4.8 Cr, an amount of 1.60Cr against demand for GNOIDA was already deposited to the dept which was received separately from GNOIDA Authority before 2012. After 2012 no separate payment  was received from GNOIDA authority as such no further amount was paid to the department. No payment was made to the department w.r.t Haryana works for construction of EWS Flats as no separate payment was received from HBH and also the same works does not fall under the preview of Service Tax. High Court Punjab & Haryana has also passed a judgment in Aug 2016 that No service tax can be levied for construction of BPL Houses & also HBH is not entitled to pass on the burden of service tax payable on its part, if the tax is leviable, upon the contractors (CWP No. 12304 of 2015). A reply was filed to challenge the SCN in July 2015. 
In June,17 the Commissioner of Service Tax has confirmed a demand of 2 Cr for HBH projects  and dropped the demand for service tax against the GNoida projects. The same order needs to be challenged within 90 days in front of Appellant Authority Allahabad alongwith an amount of 7.5% of the confirmed demand.
Further, Housing Board Haryana have deducted a sum of Rs 55 Lac as a payment for service Tax from the final bills prepared by them for various works in year 2016. Same amount has not been taken on record by the Commissioner in the order as the department was not aware of the same.
Hence an amount of 2.15 Cr ( 1.60 Cr for GNOIDA + 0.55 Cr for HBH ) already lies deposited with Service  tax department which is more than the demand raised by the dept against Haryana Works.
I need advice on the following issues:
1.) Does an amount of 7.5% still needs to be deposited along with challenging the order in front of Appellant authority as a sum more than the demand already lies deposited with the department?
2.) If, Yes. What measures can be taken to avoid paying the 7.5% deposit as our firm is no longer operational and have done no work since year 2014. ( like filing of writ in any court of Law, Asking for refund from Service tax dept, asking for refund from HBH as service tax cant be deducted from our Payments etc)
3.) Any professional who can handle our case in Allahabad Tribunal and who has experience handling the Service Tax demand cases along with fee details?
Asked 7 years ago in Service Tax

Sorry sir, the don't handle service tax related litigation. My other colleague will revert shortly.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hi,

Do you have any refunds due from the service tax department?

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

Sorry, but I cannot help/ guide you in this matter.

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Hi,

Usually 7.5% of tax has to be deposited. If you have any refund due from the department, then you can ask them to adjust it against the same.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

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