OFFIC E O F THE CO MM IS S IONER CENTRAL EXCISE & s E R V IC E TAX COMMISSI O NERATE 7 - A , ASHOK MARG , L U CKNOW C . N o . : V( 30)Ad j ' / Lko I l 06 / 2 0 13 / b ~ '\ -- ~(?C A . \ u . .. ~ Da ted : 25 . 06.2 01 3 , f c \ ~ f c , ? ' ?- • \ SHOW CAUSE NOTICE I ST A TEMENT NO . : 23 / . c O MMR . ILK O /S T /2 0 1 3-14 T o, M / s International Transformers (P) L td ., Kanpur R o ad (Near Airport) , P.O . Manasnagar, L uck n o w - 226023 . In ter m s of S ec t ion 7 3 ( l A) of the Fi n a nce Act, 1 994, th i s Show Cause N ot ice is issued t o M / s International Transfor m ers ( P ) Ltd., Kan pur Road , p . a . M an a sn aga r , L uck now , (hereinafte r refe r red to as th e vNo t icee") in cont i nuat i on o f the ear li e r SCN No. 3 7 / Co mm r . / Lko / S T / 2 0 11 - 12 d ated 14 . 10 . 2011, for the p er iod F . Y . 20 1 1 - 1 2 and Ap r il, 2012 to Ju ne ,2 0 12, as t he g rou n ds r e l i ed upon in the i nst an t N ot i ce a r e t he s a m e a s me ntione d in th e ea rlie r Sho w C aus Notice referred supr a . 2 . Wher ea s in r epl y to the le t ters C . No. 50-ST / INV . / l n ter t . Tr a n sf. / Gr-VI I I /L ko-I / 10 - 11 / 2 12 6 dated 13 . 0720 J 2 , e v en n o. 3981 d a te d 19 . 1 2 .. 2 01 ) & even no 1632 dated 22 . _ 03.2013 , t e Not i cee vi de their l etter dated 22 . 05 2013 & 1 2 . 06 . 201 3 (RUD - 1 & 2), fur n i s hed th e co st of mate r i al u sed i n r epair and ma i ntenance o f the t ra ns former wh i ch has not b e en i n cl ude d by th e m in t he t axa ble v a lu e reflected in the ST-3 Returns submit t ed for t he ear 2011 - 12 and A pr il, 20 1 2 to June, 201 2 (RUD -3 , 4 & 5) . On the bas i s o f the i nforma t ion f urnish e d by the Noticee, their tax liabi l ity is comp u ted here un der as p e r the s ta t em ent g i ven b elo w : - Y ear Rat e of C o st of Labour Valu e of Total Service Service App lic abl material Charges Tax a ble Servic e Tax in r /o Tax short e S e rvice used in Charged Servi c e o n Tax due Main t e n a paid Tax repair whi c h on amou nt n ee or (Co l . N o . ex c luding serv ice tax ment ion ed Rep a i r 6 -7 ) VAT , sh ou l d be a t Co l . N o. Ser v ic e paid 5 paid a s pe ST-3 1 2 3 4 5 (3+4) 6 7 8 FY - 10. 3 0% 1409 9 8 7 11 434496 6 1 4 5 343 67 7 149 7039 9 44 7 5 3 3 1 4522866 2011 - 12 Apr.12 to 12.36% 1834 67 93 56412 0 189 10 913 2 33 7 3 89 6 97 2 6 2 267 6 63 J un .12 Tota l 159345504 4909086 164254590 17307788 51 7 2 5 9 1679 0 529 ( Am t. in Rs. )
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The Noticee by not including the value of the of material in their taxable value, as
required under provision of Section 67 of the Finance Act, 994 have failed to assess their tax liability
correctly under provision of Section 68 of the Act, and ha thus intently evaded their tax liability
amounting to Rs. 16790529/-. They are thus liable for runder Section 78. As they have not
discharged their tax liability within prescribed time, they are also liable to penalty under Section 76 of
the Act.
4. Therefore, M/s International Transformers (P) Ltd., Kanpur Road, P.O. Manasnagar,
Lucknow-226023, are hereby called upon to Show Cause to the Commissioner, Central Excise &
Service Tax, 7-A, Ashok Marg, Hazratganj, Lucknow-226001, within 30 days of the receipt of the
notice, as to why:-
1. Service Tax amounting to Rs. 1,67,90,529/- (Rupees One Crore Sixty Seven Lakhs Ninety
Thousand Five Hundred &Twenty Nine Only) not paid by them should not be demanded
and recovered from them under provision of Section 73 (1) of the Finance Act, 1994.
2. Interest at appropriate rate should not be charged and recovered from them under Section 75
of Finance Act, 1994 for non-payment of service tax by due dates.
3. Penalty should not be imposed upon them under Section 76 of the Finance Act, 1994.
4. Penalty should not be imposed upon them under Section 78 of the Finance Act, 1994.
They are further directed to produce at the time of showing cause all the evidences oral &
documentary, upon which they intend to rely upon in support of their defense. They may specify in
their defense reply as to whether they would like to be heard in person before the adjudicating
authority before the case is decided. If no such specific mention is made in their written replies, it
shall be presumed that they do not desire any personal hearing ..If they do not show cause against the action proposed III this notice in writing within
stipulated period of 30 days and if they or their authorized representative does not appear before the
adjudicating authority on the date and time fixed for personal hearing, the case shall be liable to be
disposed off ex-parte on the basis of evidence brought on record, without making any further
reference to them.
This show cause notice IS issued without prejudice to any other action that may be
contemplated against them in pursuance of Service Tax Act and Rules made hereunder or any other
law for the time being in forced and relevant in the matter.