SATENDRA VIKRAM SINGH

1. M/s. Jagaji Construction Company, Vadodara (Appellant) have been awarded a contract dated 17.07.2006 by M/s. BLB Mall Management Company Pvt. Ltd. to construct a shopping mall (BLB Mall) at Sarabhai Industries, Vadodara at a cost of Rs. 6,55,41,780/- including all direct and indirect costs, duty, taxes, sale tax, VAT, service tax on any inputs, royalty on quarried items etc. The construction which began in October 2006, was completed in March, 2008 on Rate Contract basis. The basic rate for cement and steel was taken as Rs.200/- per bag and Rs.27,500/- per MT respectively. On the basis of intelligence that appellant was not paying proper service tax, an enquiry was initiated against them in Jan 2010. Vide letter dated 24.03.2010, the appellant confirmed to have received an amount of Rs.6,27,36,379/- for construction of BLB Mall during the period from December 2006 to 2008-09 which included TDS, VAT and security deposit but not the service tax.

1.1 Scrutiny of ST-3 returns revealed that the appellant had paid service tax of Rs.7,66,424/- in 2007-2008 on taxable value of Rs.3,70,64,728/- and service tax of Rs.64,114/- in 2008-09 on taxable value of Rs.31,12,351