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2020 (1) TMI 942 - AT - Service TaxClassification of goods - fabrication of armoured vehicles - classification of services - activity of bullet proofing - Business Auxiliary Service or under works contract service? - demand of service tax on renting of immobile property service - benefit of N/N. 6/2006- CE dt. 1.3.2006. Classification of goods - fabrication armoured vehicles - HELD THAT:- The appellant is fabricating the motor vehicles which are having been used for protection against AK-47, splinter proof protection, bullet proof glass, retaliation through holes made on the side, rear and on top of the vehicle. These features made them special purpose light armoured vehicles meant for use by the police and provide protection to the troops sitting inside the vehicles against bullets/hand grenades - similar issue decided in the case of M/S. JCBL LIMITED, M/S. TATA MOTORS LIMITED, M/S. JCL LIMITED VERSUS CCE & ST, CHANDIGARH-II [2019 (4) TMI 176 - CESTAT CHANDIGARH] where it was held that the main purpose is to ensure the safety of the occupants inside the vehicle for which, the vehicle is made bulletproof. Therefore, the bulletproof SPVs deserve to be classified under chapter heading 8705 - As the goods are classifiable under chapter heading 8705 90 00. Therefore, the appellants are entitled for the benefit under Serial No.50 of exemption N/N. 6/03-CE dt.1.3.2003 - thus, the appellant is manufacturing special purpose light armoured vehicle meant for use by troops and merit classification under Chapter heading 8705 90 00 and entitled for the benefit of exemption N/N. 6/2006-CE dt.1.3.2006 and no duty is payable by the appellant on the said activity. Classification of services - activity of bullet proofing - whether classifiable under works contract or business auxiliary service? - HELD THAT:- It is fact on record that that the appellant is providing the said service along with material as material is used for bullet proofing on which the VAT has been paid by the appellant. In that circumstance, relying upon the decision of Hon’ble Supreme Court in the case of COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT] wherein the Apex Court has held that the services supplied along with material, the same merit classification under works contract service, therefore, the appellant has correctly classified the activity under works contract service. No service tax is payable under the business auxiliary service - Therefore, the demand is also set aside under the category of business auxiliary service. Renting of immovable property service - demand of service tax - HELD THAT:- During the period from March and August, 2008, the service tax was payable on receipt basis. Admittedly, from the record, it is clear that the appellant has not received any amount on account of renting of immovable property, therefore, no service tax is payable by the appellant. Penalty - HELD THAT:- The whole of the demand against the appellant is not sustainable and the same is set aside - Consequently, no penalty is imposable on the appellant. Appeal allowed - decided in favor of appellant.
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