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2024 (2) TMI 254 - AT - Service TaxLevy of service tax - Commissioning or Installation service - whether the activity of the appellant is covered under Section 65(39a) prior to 16.06.2005? - HELD THAT:- From the amended definition of Erection, Commissioning or Installation w.e.f. 16.06.2015, the concept has been expanded as prior to the said date the definition did not cover any activity relating to Electrical and Electronic Devices. Installation of Electrical and Electronic Devices including wirings or fittings has been specifically added by virtue of the enactment of the Finance Act, 2005 and since then appellant has been paying the service tax under this category. Reliance has been placed on the decisions of the Tribunal in POWER BEST ELECTRICALS LTD. VERSUS COMMISSIONER OF C. EX, [2007 (10) TMI 138 - CESTAT, BANGALORE], RAJEEV ELECTRICAL WORKS VERSUS COMMISSIONER OF C. EX., CHANDIGARH [2007 (12) TMI 135 - CESTAT, NEW DELHI]. These decisions in clear words observed that Erection services were made taxable from 10.09.2004 and Electrical wiring or Installation of electrical fittings or devices was made taxable only pursuant to the enactment of Finance Act, 2005 on 14.05.2005. In the present case it is found from the records that the appellant undertakes Erection work for Vidhyut Vitran Nigam i.e., Erection of Transmission Line/Tower and the nature of activity involved therein includes conducting route survey, erection of PCC Poles in alignment, including excavation of pit, including back – filing and Consolidation, fixation of Arms, MS Angle, MS Channel, Double Pole Line Structure Guard Packet and Porcelain Insulator, Erection of Lattice Tower, and Drawing of Wire etc. In terms of the enlarged definition of Erection, Commissioning or Installation as provided in Finance Act, 2005, the activity undertaken by the appellant becomes taxable w.e.f. 16.06.2005 and for the said period the appellant has already paid the service tax of Rs.1,37,515/-. Thus, the liability to tax arises only from 16.06.2005 consequent to the amendment enlarging the scope of the services relating to electrical fittings, wiring and other components and devices. Therefore, the demand on account of service tax, interest and penalty is unsustainable. Appeal allowed.
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