IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL, KOLKATA REGIONAL BENCH – COURT NO.1 (Arising out of Order-in-Appeal No.149/HAL/CE/2017-18 dated 05.03.2018 passed by Commissioner (Appeals) of CGST & Central Excise, Kolkata)

M/s Hi-Tech Refractory Company (Vill.-Dakshin Baguyan, Tamluk, Purba Medinipur, Pin-721653)

Appellant VERSUS Commissioner of CGST & Central Excise, Haldia (15/1, Strand Road, Kolkata-700001)

Respondent APPERANCE :

Mr.Sourabh Bagaria & Mr.Indranil Banerjee, both Advocates for the Appellant Mr.S.K.Jha, Authorized Representative for the Respondent CORAM:

HON’BLE MR.ASHOK JINDAL, MEMBER (JUDICIAL)

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

FINAL ORDER NO.75311/2026 DATE OF HEARING : 25 FEBRUARY 2026 DATE OF PRONOUNCEMENT : 27 FEBRUARY 2026 Per Ashok Jindal :

The appellant is in appeal against the impugned order.

2. The facts of the case are that the appellant is registered with Central Excise Department for providing erection, commissioning and installation service and construction service other than residential complex including commercial/industrial buildings or civil construction. The appellant was providing construction service. It was found that the appellant has providing this service by filing ST-3 Returns and availing exemption benefit for providing the services to be received by SEZ unit or a developer of SEZ under Notification No.40/2012-ST dated 20.06.2012, which superseded by Notification No.12/2013-ST dated

01.07.2013 without observing the procedures and conditions as stipulated and thereafter, charged an amount of Rs.53,55,600/- for providing the exempted service to their client leading to non-payment of service tax of Rs.6,42,672/-.

2.1 On scrutiny of the ST-3 Returns for the period October, 2013 to March, 2014, it was found that the appellant being a provider of Construction Services other than residential complex including commercial/industrial buildings or civil structures have shown an amount of Rs.53,55,600/- charged for providing exempted service in addition to furnishing gross amount/gross total amount of Rs.59,45,600/-. It was also found that the appellant has mentioned against an option column for availing the benefit of exemption in the said ST-3 Returns to the effect of providing exempted service under Notification No.40/2012-ST dated 20.06.2012, which shows thast the service tax with cess has been assessed and paid on the Net Taxable Value derived after deducting the amount of exempted service i.e. Rs.53,55,600/- from the gross taxable amount i.e.

Rs.59,45,600/-.

2.2 Notification No.40/2012-ST dated 20.06.2012 as superseded by Notification No.12/2013-ST dated 01.07.2013, has exempted the services on which the service tax is leviable under Section 66B of the said Act, received by a unit located in a SEZ or developer of SEZ and used for the authorized operation from the whole of the service tax, education cess and secondary and higher secondary cess leviable thereon.

2.3 The exemption shall be provided by way of refund of service tax paid on the specified services received by the SEZ unit or the developer and used for the authorized operations.

2.4 The appellant was requested by a letter dated 28.09.2015 for submission of authorization in Form A-2 on the strength of which, the appellant may deserve the right/eligibility to avail the exemption from payment of whole of the service tax with cess for providing the said service for which an amount of Rs.53,55,600/- has been charged to their client and no service tax has been paid. The appellant did not provide Form A-2. Therefore, the impugned show-cause notice dated 09.10.2015 was issued to the appellant for the period October, 2013 to March, 2014.

2.5 The matter was adjudicated. The demand of service tax was confirmed by denying the said Notification.

2.6 Being aggrieved with the said order, the appellant is before us.

3. The ld.Counsel for the appellant submits that the facts in the case are not in dispute. He submits that the appellant is provid