CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL ALLAHABAD REGIONAL BENCH - COURT NO.II (Arising out of Order-in-Appeal No.342/ST/Alld/2024 dated 25/06/2024 passed by Commissioner (Appeals) Customs, Central Excise & Service Tax, Allahabad)

M/s Mukesh Kumar Thekedar, …..Appellant (Nagla Mathiya, Odenya, Mandal, Mainpuri)

VERSUS Commissioner of Central Excise &

CGST, Kanpur ….Respondent (117/7 Saravoday Nagar, Kanpur-208005)

APPEARANCE Shri Madhukar Anand, Consultant for the Appellant Shri Santosh Kumar, Authorised Representative for the Respondent CORAM: HON’BLE MR. SANJIV SRIVASTAVA, MEMBER (TECHNICAL)

FINAL ORDER NO.70141/2026 DATE OF HEARING : 05 May, 2026 DATE OF DECISION : 05 May, 2026 SANJIV SRIVASTAVA:

This appeal is directed against Order-in-Appeal No.342/ST/Alld/2024 dated 25/06/2024 passed by Commissioner (Appeals) Customs, Central Excise & Service Tax, Allahabad. By the impugned order, Commissioner (Appeals) has dismissed the Order-in-Original No.70/ST/Adj/AC/Circle- I/Audit/Kanpur/2023 dated 31.10.2023 wherein following has been held:-

“ORDER i. I confirm the demand of Service Tax amounting to Rs.40,57,763/- (Rupées Forty Lakhs Fifty- Seven Thousand Seven Hundred Sixty-Three Only) inclusive of Education Cess and S&H Education Cess, under Section proviso to Section 73(1) of Finance Act 1994 read with Section 174 of CGST Act, 2017 as discussed above and order for recovery of the same from the Noticee.

ii. I further order for recovery of interest on the amount mention in Para-6(i) above, at the appropriate rate for the relevant period till the payment of said tax, from the Noticee under Section 75 of the Finance Act, 1994 read with Section 174 of CGST Act, 2017 as discussed above.

iii. I impose a penalty of Rs.40,57,763/- (Rupees Forty Lakhs Fifty-Seven Thousand Seven Hundred Sixty-Three Only) upon the Noticee under section 78 of the Finance Act, 1994, as discussed above. Further I give an option to the party to pay 25% penalty of the demand confirmed in Para -6(i) above, as provided in the Section 78-of the Act, if Service Tax and Interest as confirmed above is paid within a period of 30 days of the date of receipt of this order. Further the benefit of reduced penalty shall be available only, if the amount of such reduced penalty is also paid within 30 days.

iv. I impose a penalty of Rs. 10,000/- (Rupees Ten Thousand only) upon Noticee under Section 77(1)(a) of the Finance Act, 1994 read with Section 174 of CGST Act, 2017 as discussed above.

v. I impose a penalty of Rs. 10,000/- (Rupees Ten Thousand only) upon Noticee under Section 77(1)(c) of the Finance Act, 1994 read with Section 174 of CGST Act.

2017 as discussed above.

vi. I impose a penalty of Rs. 10,000/- (Rupees Ten Thousand only) upon Noticee under Section 77(1)(d) of the Finance Act, 1994 read with Section 174 of CGST Act, 2017 as discussed above.

vii. I impose a penalty of Rs. 10,000/- (Rupees Ten Thousand only) upon Noticee under Section 77(2) of the Finance Act, 1994 read with Section 174 of CGST Act, 2017 as discussed above.

viii. I impose a penalty of Rs. 20,000/- [Rupees Twenty Thousand Only] upon Noticee, under Section 70 of the Finance Act, 1994 read with Rule 7(C) of ibid and read with Section 174 of CGST Act, 2017 as discussed above.”

2.1 Appellant is engaged in activity which as per the revenue were covered by the definition of taxable services as per Section 65B (44) of the Finance Act, 1994 read with Section 66B.

Appellant did not obtain any registration as per Section 69 ibid.

2.2 On the basis of information received from the Income Tax Department under third party data exchange policy, it was observed that the appellant had received huge sums as per TDS/ITR during the Financial Year 2016-17 and had not discharged any service tax on the same.

2.3 Inquiry/investigation was initiated and the appellant vide letter dated 23.06.2021 were asked to provide relevant documents such as form ST-2, details of nature of work/services provided, ST-3 Returns, Bills/Invoice/Job