IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL EASTERN ZONAL BENCH : KOLKATA REGIONAL BENCH – COURT NO. 1 Service Tax Appeal No. 75488 of 2023 (Arising out of Order-in-Original No. 12/ST/Ayukt/2023 dated 15.03.2023 passed by the Commissioner of C.G.S.T. and Central Excise, Patna-I Commissionerate, Central Revenue Building (Annexe), 3^rd Floor, Bir Chand Patel path, Patna – 800 001)

M/s. Rama Construction : Appellant Vill. & P.O.: Aunta, PIN – 803 303, District: Patna VERSUS Pr. Commissioner of C.G.S.T. and Central Excise : Respondent Patna-I Commissionerate, Central Revenue Building (Annexe), 3^rd Floor, Bir Chand Patel Path, Patna – 800 001 APPEARANCE:

Shri S.K. Goyal, Chartered Accountant, for the Appellant Shri S.K. Dikshit, Authorized Representative, for the Respondent CORAM:

HON’BLE SHRI ASHOK JINDAL, MEMBER (JUDICIAL)

HON’BLE SHRI K. ANPAZHAKAN, MEMBER (TECHNICAL)

FINAL ORDER NO. 76540 / 2025 DATE OF HEARING: 16.04.2025 DATE OF DECISION: 18.06.2025 ORDER: [PER SHRI K. ANPAZHAKAN]

The facts of the case are that M/s. Rama Construction, Vill. & P.O.: Aunta, PIN – 803 303, District: Patna (hereinafter referred to as the “appellant”) is a Government registered contractor and provides works contract services. During the material period, the appellant rendered works contract services related to the Central and State Governments.

2. On the basis of verification of documents obtained from the Income Tax Department, such as Form 26AS, along with Profit & Loss Account of the appellant for the relevant period, and on comparison of the same with the S.T.-3 Returns filed by the appellant for the said period, it was alleged by the Revenue that the appellant had not paid appropriate Service Tax during the period under dispute. It also appeared to the Revenue that the appellant had failed to submit any document to show that the amounts so received were from services which fall under the Negative List or covered under any of the entries mentioned in the Mega Exemption Notification No. 25/2012-S.T. dated 20.06.2012. Thus, it appeared to the Revenue that the amounts received by the appellant were considerations received towards rendering of taxable services for which appropriate service tax was not paid by the appellant.

3. Accordingly, a Show Cause Notice dated 16.04.2019 was issued to the appellant proposing to demand Service Tax of Rs.5,54,77,142/- (inclusive of cesses) for the period from April, 2013 to March, 2017.

3.1. The said notice was adjudicated by the Principal Commissioner of C.G.S.T. and Central Excise, Patna-I Commissionerate vide the impugned Order-in- Original No. 12/ST/Ayukt/2023 dated 15.03.2023 wherein the ld. adjudicating authority has confirmed the demand of Service Tax of Rs.5,54,77,142/- (inclusive of cesses), along with interest and imposed an equal amount of tax as penalty under Section 78 of the Finance Act, 1994, besides imposing penalties of Rs.10,000/- each under Section 77(1)(c)(ii), Section 77(1)(c)(iii) and Section 77(2) of the Finance Act, 1994.

4. Aggrieved by the confirmation of the said demands, the appellant has filed this appeal.

5. At the outset, the Ld. Counsel appearing on behalf of the appellant submitted that they had not received the copy of the Show Cause Notice dated 16.04.2019, until 30.12.2022. In this regard, he has referred to a letter dated 23.04.2025 submitted by the Department offering comments on the documents submitted by the appellant, in which it is categorically mentioned that the Range Officer has intimated that the Show Cause Notice was sent through Registered Post to the registered address of the appellant on 16.04.2019, but was returned undelivered on 24.04.2019. In this regard, the Ld. Counsel for the appellant points out that the said Notice was returned undelivered on 24.04.2019, but the Department has resorted to delivery of the same through the Inspector also on 16.04.2019. The letter dated 24.06.2019 reveals that the Inspector found the premises to be locked and hence he ha