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OFFICE OF THE COMMISSIONER

CENTRAL EXCISE &sERVICE TAX COMMISSIONERATE

7-A, ASHOK MARG, LUCKNOW

C. No.: V(30)Adj'/LkoIl06/2013 / b~'\ -- ~ ( ? C A . \ u . .. ~ Dated: 25.06.2013

, fc\~fc,?'?- •\

SHOW CAUSE NOTICE I STATEMENT NO. : 23/.cOMMR.ILKO/ST/2013-14

To,

M/s International Transformers (P) Ltd.,

Kanpur Road (Near Airport),

P.O. Manasnagar,

Luck now-226023.

In terms of Section 73 (lA) of the Finance Act, 1994, this Show Cause Notice is issued to

M /s International Transformers (P) Ltd., Kanpur Road, p.a. Manasnagar, Lucknow, (hereinafter

referred to as the vNoticee") in continuation of the earlier SCN No. 37/Commr./Lko/ST/2011-12 dated

14.10.2011, for the period F.Y. 2011-12 and April, 2012 to June, 2012, as the grounds relied upon in

the instant Notice are the same as mentioned in the earlier Show Cause Notice referred supra.

2. Whereas in reply to the letters C.No. 50-ST/INV./lntert.Transf./Gr-VIII/Lko-I/10-11/2126

dated 13.0720J2, even no. 3981 dated 19.12..201) & even no.1632 dated 22._03.2013, the Noticee

vide their letter dated 22.05.2013 & 12.06.2013 (RUD - 1&2), furnished the cost of material used in

repair and maintenance of the transformer which has not been included by them in the taxable value

reflected in the ST-3 Returns submitted for the year 2011-12 and April, 2012 to June, 2012 (RUD -3,

4 & 5). On the basis of the information furnished by the Noticee, their tax liability is computed

hereunder as per the statement given below :-

Year Rate of Cost of Labour Value of Total Service Service

Applicabl material Charges Taxable Service Tax in r/o Tax short

e Service used in Charged Service on Tax due Maintena paid

Tax repair which on amount nee or (Col. No.

excluding service tax mentioned Repair 6-7)

VAT , should be at Col. No. Service

paid 5 paid as

per ST-3

1 2 3 4 5 (3+4) 6 7 8

FY -10.30% 140998711 4344966 145343677 14970399 447533 14522866

2011-12

Apr.12

to 12.36% 18346793 564120 18910913 2337389 69726 2267663

Jun.12

Total 159345504 4909086 164254590 17307788 517259 16790529

(Amt. 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.

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Relied Upon Documents:

1. Information submitted by Mls ~ Int. Transformers . dated 22.05.2013, 12.06.2013 (RUD - 1

&2).

2. ST-3 Return for the year FY 2011-12 and April, 2012 to June, 2012 (RUD - 3, 4 &5).

\1~0'11t\''0~

(HIMANSHU GUPTA)

COMMISSIONER

CENTRAL EXCISE & SERVICE TAX

LUCKNOW

Copy forwarded for information and necessary action to: -

1. The Assistant Commissioner (Service Tax), Division-I Lucknow along with original copy of

Show Cause Notice meant for the Noticee with request to get it served upon the Noticee and

submits the dated acknowledgement to this office for record.

2. The Superintendent (Service Tax), Group-VIII, Division-I Lucknow.

3: Guard File.

u~UPERINTEN ~~

CE;:P - . §g',~~VICE TAX

, KNOW

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