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j) Demand may be raised in future from Excise Department as Gandhinagar, Mumbai and
Pune centres have been taking credit of service tax paid on input services in
contravention to the Cenvat Credit Rules 2002. It is not possible for us to ascertain the
exact amount of Service Tax liability.
k) As dispute between CIL and GIL in respect of Gandhinagar centre over claim of rent is
pending in court, the centre may have to pay rent for the months of September'08 and
October'08 amounting to Rs. 0.94 lacs to GIL if CIL looses the case. (Refer note no. 27)
2. Balances of Sundry debtors, Sundry creditors, loans and advances given & taken by the
society are subject to confirmation and reconciliation. The adjustments, if any, arising out
are being made at the time of reconciliation with the parties concerned.
3. During the “Sales Tax Assessment” for the A.Y 2002-03, 2003-04 & 2004-05, the Sales
Tax Department had raised a demand on STPI, Noida for Rs. 96.40 lacs, Rs. 80.57 lacs
& Rs. 65.50 lacs respectively. The cases were forwarded for reassessment to the Deputy
Commissioner Trade Tax, Noida. During the reassessment proceeding Sales Tax
Department further reassessed the tax for the A.Y. 2002-03, 2003-04 & 2004-05 at
Rs. 13.28 lacs, Rs. 11.81 lacs & Rs. 9.94 lacs respectively.
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An Appeal was filed with stay application against reassessment (remand) order on
07.04.08 and after the hearing Jt. Commissioner (Appeals) has reassessed the tax to Rs.
3.59 lacs, Rs. 7.73 lacs and Rs. 2.51 lacs for the A.Y. 2002-03, 2003-04 & 2004-05,
thereby giving a relief of Rs. 21.20 lacs. STPI, Noida has deposited a total sales tax of Rs.
36.11 lacs against the above mentioned demands. Considering the final reassessed tax of
Rs. 13.83 lacs the balance amount is thus refundable/adjustable in due course. However,
this is subject to the final settlement of the case. STPI, Noida is in process of filing an appeal
to the Tribunal in respect of the reassessed tax.
The assessment for the A.Y. 2005-06 and 2006-07 is in process.
4. During the “Service Tax Audit” thus conducted by the Central Excise officers, a demand of a
Rs. 27.14 lacs and Rs. 4.23 lacs has been raised on STPI, NOIDA vide order no.
19/ADA/NOIDA/2007 dtd. 31/12/07 on account of non payment of service tax on Leased
Circuit Services provided by them to MTNL for the period 16.07.01 to 31.12.03 and on
installing antenna for providing Internet services and Leased line services in the premises of
STP units respectively. The dept. has also imposed a penalty u/s 78 of the said Act which has
been eventually reduced to Rs. 2 lacs, a penalty of Rs. 100 per day for the failure to pay tax
u/s 76 of the Act (subject to limit specified in the Act) and interest on account of delay in
payment of service tax u/s 75 of the said Act amounting to Rs. 0.07 lacs. Hence the total
demand of the dept. being Rs. 33.45 lacs and penalty of Rs.100 per day.
STPI, NOIDA has deposited a sum of Rs. 5 lacs as pre-deposit on 22.05.08 and obtained
stay against the recovery of the rest of the demand of service tax along with penalty and
interest. Presently an appeal has been filed with CESTAT against order no.
122/CE/APPL/NOIDA/08 dtd. 23.10.08 on 2nd Feb 2009.
The balance amount of Rs. 28.45 lacs & penalty of Rs.100/- per day have not been
accounted for in the books of accounts.
5. STPI has paid under protest Rs. 38.73 Lacs to Income Tax Department towards non
deduction of tax at source on payment made to foreign carriers in respect of Hyderabad
Centre. The Income Tax Appellate Tribunal allowed the appeal in favour of the Centre on
th
29 January 2008 and the Centre has initiated process for obtaining refund and has
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received Rs. 33.58 lacs along with interest of Rs. 10.08 lacs on 21 April, 2009 and for
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