in

original

No

14/Commissioner/ Service Tax/ NOIDA/ 201617 dated 09.02

2017 of the Commissioner Service tax NOIDA. By the impugned

order following has been held:

―ORDER

(i)

I hereby confirm the demand of the service tax

amounting to Rs.9,00,01,588/- (Rupees Nine Crores

One Thousand Five Hundred Eighty Eight only) as raised

in the show cause notice invoking the proviso to Section

73(1) of the Finance Act, 1994 and order M/s. Sahara

Sanchaar Limited, C-2,3,4, Sahara India Complex,

HON’BLE MR. P.K. CHOUDHARY, MEMBER (JUDICIAL)

HON’BLE MR. SANJIV SRIVASTAVA, MEMBER (TECHNICAL)

Service Tax Appeal No.70300 of 2017

2

Sector-11, Noida to pay the same in terms of provisions

under Section 73(2) of the Act, ibid

(ii)

I further impose a penalty of Rs.9,00,01,588/- (Rupees

Nine Crores One Thousand Five Hundred Eighty Eight

only) under Section 78 of the Finance Act, 1994 upon

M/s. Sahara Sanchaar Limited, C-2,3,4, Sahara India

Complex, Sector-11, Noida

(iii)

I also disallow the CENVAT credit of Rs.2,27,05,076/-

(Rupees Two Crores Twenty Seven Lakhs Five Thousand

and Seventy Six only) as proposed in the show cause

notice under Rule 14 of the CENVAT Credit Rules, 2004

read with the proviso to Section 73(1) of the Act, ibid,

and order M/s. Sahara Sanchaar Limited, C-2,3,4,

Sahara India Complex, Sector-11, Noida to pay the

same along with interest under Rule 14 of the CENVAT

Credit Rules, 2004 read with Section 73(2) of the

Finance Act, 1994

(iv)

I further impose a penalty of Rs. 2,27,05,076/- (Rs.

Two Crores Twenty Seven Lakhs Five Thousand and

Seventy Six only) under Rule 15(3) of the CENVAT

Credit Rules, 2004 read with Section 78 of the Finance

Act, 1994 on M/s. Sahara Sanchaar Limited, C-2,3,4,

Sahara India Complex, Sector-11, Noida.

(v)

I also order to recover the interest under Section 75 of

the Finance Act, 1994 from M/s. Sahara Sanchaar

Limited, C-2, 3, 4, Sahara India Complex, Sector-11,

Noida on the confirmed demand amounts as per sl. (i) &

(iii) above

(vi)

I further impose a total penalty of Rs. 10,000/- (Rupees

Ten Thousand Only) on M/s. Sahara Sanchaar Limited,

C-2,3,4, Sahara India Complex, Sector-11, Noida under

Section 77(1)(a) and Section 77(2) of the Finance Act,

1994

The above adjudged dues should be paid forthwith by the party.‖

Service Tax Appeal No.70300 of 2017

3

2.1 Acting on the intelligence that the Appellant was evading

service tax payment on supply of the tangible goods services,

the business premises of the appellant was visited/ searched on

20.3.2015.

2.2

During the course of search proceedings, it was noticed

that the party has leased out earth station and other equipment

and related infrastructure to have up linking facility of T.V

Programs to their sister concern namely M/s Sahara India

Commercial Corporation Limited (herein after referred to as "the

SICCL". Statement of Ms Santosh Khandelwal, the Cost

accountant and company secretary was recorded on the spot.

2.3

After scrutiny of the agreements and other related

documents and after making necessary enquiries it was

observed that appellant has shown income from lease rent of

Rs.82.62 Crores as per the balance sheet and profit/loss account

statement of the party for the financial years 2009-10, 2010-11,

2011-12, 2012-13 and 2013-14. On this income appellant was

required to pay service under the category of “Supply of Tangible

Goods Services”. Thus appellant evaded payment of service tax

as indicated in the table below:

Financial

Year

Revenue from lease

rent

Rate of Service

Tax

Service

Tax

payable

2009-10

35,34,09,423

10.30%

3,64,01,171

2010-11

11,67,81,184

10.30%

1,20,28,462

2011-12

11,82,38, 189

10.30%

1,21,78,533

2012-13

11,82,38, 189

12.36%

1,46,14,240

2013-14

11,95,72,665

12.36%

1,47,79,181

Total

82,62,39,650

9,00,01,588

It was observed that the appellant had knowingly evaded

payment of the service tax on rental income/ lease income of

earth station and related equipment. They have in their ST-3

returns for financial year 2