CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL NEW DELHI PRINCIPAL BENCH – COURT NO. – IV [Arising out of Order-in-Original/Appeal No. IND-EXCUS-000-APP-53-2021-22 dated 10.12.2021 passed by the Commissioner of CGST & Central Excise and Customs (Appeals), Indore]

M/s. Karbi Trade & Industries Ltd.

Railway Station, Shamgarh, Mandsaur, M.P.-458883 …Appellant VERSUS Commissioner of Central Excise & CGST –

Ujjain …Respondent

29, Bharatpuri, Post Box, 215, Ujjain, M.P. - 456010 APPEARANCE:

Shri Ankur Upadhyay, Advocate for the Appellant Shri Mehboobur Rehman, Authorized Representative for the Respondent CORAM:

HON’BLE DR. RACHNA GUPTA, MEMBER (JUDICIAL)

HON’BLE MR. P.V. SUBBA RAO, MEMBER (TECHNICAL)

DATE OF HEARING: 29.01.2026 DATE OF DECISION: 13.03.2026 FINAL ORDER NO. 50356/2026 DR. RACHNA GUPTA M/s. Karbi Trade & Industries Limited, the appellant herein is registered with the service tax department under the category of Manpower Recruitment/supply agency service. Based on the third party data information (from income tax department), the appellant was observed to have raised the taxable amount against the provision of Manpower Recruitment Service to M/s. Donypolo Udyog Ltd. during the period from December 2015 to June 2017. However, they have not paid the service tax by wrongly availing the benefit of Notification No.30/2012-ST dated 20.06.2012 for which the appellants were otherwise not entitled. Accordingly, a Show Cause Notice bearing No.15-20/20-21 dated 14.10.2020 was served upon the appellants proposing the demand of service tax amounting to Rs.35,40,915/- along with the interest at appropriate rates and the proportionate penalties. Late fee of Rs.1000/- was also proposed to be recovered. The show cause notice was served invoking the extended period of limitation alleging that the appellant has not paid the serve tax despite being well aware of rendering the taxable services. The said proposal was initially confirmed vide Order-in-Original No. 57/20-21 dated 02.03.2021. Appeal against the said order has been rejected vide Order-in- Appeal No. 53-2021-22 dated 10.12.2021. Being aggrieved the appellant is before this Tribunal.

2. We have heard Shri Ankur Upadhyay, learned Advocate for the appellant and Shri Mehboobur Rehman, learned Authorized Representative for the department.

3. Learned counsel for the appellant has submitted that they had provided Job Work Service to M/s. Donypolo Udyog Ltd. in respect of manufacturing of concrete railway sleepers. The agreement to this effect is referred on behalf of the appellant. Final order of this Tribunal bearing No. 50305/2023 dated 13.03.2023 in the case of said M/s. Donypolo Udyog Ltd. is mentioned to have already settled the issue.

3.1 It is further submitted that the service tax liability in respect of Job Work Services rendered by the appellant, during the impugned period, has already been discharged by M/s. Donypolo Udyog Ltd., the service recipient under Reverse Charge Mechanism). Chartered Accountant Certificate to this effect has been relied upon. With these submissions and relying upon two other decisions namely M/s. Shivshakti Enterprises Vs. CCE, Pure reported 2016 (41) STR 648 (Tri.-Mumbai) and M/s. Shaily Traders Vs. Commissioner of Central Excise, Indore reported as 2018 (10) GSTL 462 (Tri.-Del.), order under challenge (O-I-A dated 10.12.2021) is prayed to be set aside and the appeal is prayed to be allowed.

4. While rebutting these submissions, learned Departmental Representative, at the outset, has reiterated the findings arrive at the in the impugned order. It is submitted that the appellant had themselves classified their services as Manpower Recruitment/Supply Agency Service in their service tax returns and was paying service tax up to November 2015. For the period in dispute, the appellants started showing ‘NIL’ taxable value in their returns. It was acknowledged in the statement on behalf of the appellant that the ‘NIL Returns’ were filed under wrong interpretation o