Page 101 - GSTL_3rd September 2020_Vol 40_Part 1

2020 ] KARNATAKA INDUSTRIAL AREAS DEV. BOARD v. COMMR. OF CENTRAL TAX 35
(ii) imposed penalty @ Rs. 100/- (Rupees One Hundred Only) per day
up to 17-4-2006, Rs. 200/- (Rupees Two Hundred Only) per day or
@ 2% of the service tax, per month, whichever is higher from 18-4-
2006, under Section 76; However, this penalty will be applicable for
the period till 10-5-2008 in view of the amendment to Section 78 in-
corporated vide Finance Bill, 2008, for their failure to pay service tax
in accordance with the provisions of Section 68 of the Act or the
rules made thereunder.
(iii) imposed penalty of Rs. 1000/- (Rupees One Thousand Only) under
Section 77 of the Act, for failure to furnish the prescribed return and
failure to obtain registration.
(iv) imposed a penalty of Rs. 1295,14,21,404/- (Rupees One Thousand
Two Hundred and Ninety Five Crores Fourteen Lakh Twenty One
Thousand Four Hundred and Four only), under Section 78 of the
Finance Act, 1994 for suppressing the facts and contravention of the
provision of the Act/Rule with intent to evade payment of Service
Tax, which shall be reduced to 25% of the service tax confirmed,
provided the entire amount of service tax along with interest and
reduced penalty are paid within THIRTY days of the receipt of this
order.
Further the break-up of service tax demand is as follows :-

Head Period Service Tax (Rs.)
Renting of immovable Property 2007-08 to 2009-10 692,47,57,800
Construction of residential 2005-06 to 2009-10 4,27,67,609
complex
Construction of commercial 2005-06 to 2009-10 572,70,34,553
complex
Business Support Service 2006-07 to 2009-10 22,94,36,963
Maintenance and Repair Service 2005-06 to 2009-10 2,18,80,006
Manpower Supply Services 2005-06 to 2009-10 55,42,009
Works Contract Services 2007-08 to 2009-10 2,464

2.1 Briefly the facts of the present case are that the appellant M/s. Kar-
nataka Industrial Areas Development Board (KIADB, for short) are engaged in
providing various taxable Services such as Renting of Immovable Property Ser-
vices, Construction of Commercial and Residential Complexes, Business Support
Services, Management, Maintenance or Repair Services, Manpower Recruitment
and Supply Services, Works Contract Services, etc., to various clients. It appeared
that they did not obtain any registration under Service Tax for the said services.
On the basis of intelligence gathered and developed by the officers of the Direc-
torate General of Central Excise Intelligence, Bangalore Zonal Unit (BZU for
short), it appeared that M/s. KIADB provided the above-mentioned taxable ser-
vices, but did not pay the appropriate Service Tax on such taxable services pro-
vided by them. Though it appeared that Service Tax is leviable on the said taxa-
ble services and payable by M/s. KIADB as per provisions of law, M/s. KIADB
did not discharge any Service Tax liability thereon. Accordingly, the requisite
documents/details were recovered from M/s. KIADB. A statement of Shri K.
GST LAW TIMES  3rd September 2020  117