Service tax under rcm a

Pracdip Panchal (Querist) 29 December 2014 This query is : Resolved
Dear Sir,

We are manufacturing company. After RCM notification 01-07-2012, from 01-07-2012 to 31-03-2013, our company has not deposited service tax on 75 % labor bill as per RCM notification. Please note, our company have paid service tax @ 12.36% on 100 % labor bill to our labor contractor and he has already deposited service tax @ 12.36% on 100 % labor bill instead of 25% labor bill. Please also note that our company has not taken credit of that service tax against its central excise payment on manufactured goods .
Now Excise auditor has issued memo to our company to pay service tax on 75% labor bill along with interest and penalty.
Sir, please inform us, should we pay that demand?
If yes, then how our company / labor contract get refund from service tax department?
If no, please provide us judgment / appeal order / notification on this.
Thank you.
Pradip Shah

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