9911796707
TMI Blog2017 (3) TMI 1457X X X X Extracts X X X X X X X X Extracts X X X X ..... r, 2005 to September, 2010, further the penalty was imposed of Rs. 10,000/- under Sections 68, 69 & 70 of the Finance Act read with Section 77 of the Act and Rs. 24,92,001/- was imposed as penalty under Section 78 of the Act along with interest at appropriate rate. 2. The brief facts of the case are that as per Show Cause Notice dated 15-04-2011, the appellant is a registered dealer under the provisions of Service Tax and it appeared that they have short paid Service Tax of Rs. 24,92,001/- under the category (i) Erection, Commissioning & Installation Service, (ii) works contract service, (iii) Renting of Immoveable Property & (iv) Construction of Residential Complex Service. The enquiry was made from the appellant by the anti-evasion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the proprietor was recorded wherein Mr. Dinesh Bansal stated that they are providing electrical services through Noida Authority, Greater Noida Authority, NPCL & Indian Railway Welfare Organization. They have provided services which included erection, commissioning and installation of various electrical equipments and internal and external electrification of residential complexes and also electrical development of residential sectors awarded by the aforementioned bodies. Further, copies of the contract/work order was forwarded/submitted. He stated that all the contract undertaken by him are not covered under the Service Tax net. Further, the appellant submitted the copies of contracts wise and work wise details of payment received along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Street lights and providing electrical connections to them although is taxable, they have not providing any electrical connections as they are not electrical/power distribution agency. Accordingly, the proposed demand was disputed and prayer was not made to consider contract wise, and also the tax payments made by them from time to time, as the receipts were in different Financial Years. It was also contended that certain amounts have been received by way of 100% secured advance against cost of materials, dispatched to site. No service tax is involved in these payments. Such amounts are Rs. 51,26,000/- + Rs. 37,20,615 & Rs. 14,98,500/- , received during Financial Year 2005-06. Further, the details of work done contract wise was also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plant, machinery, equipment or structure or does not result in installation of an electrical or electronic device (i.e. machine or equipment that uses electricity to perform some other function) the same is outside purview of taxable service of ECIS. Further, in Para (iii) by C.B.E.C. Circular a table have been given and explaining the tax status of the activities wherein at Serial No. (1) Laying of cables under/alongside road have been stated as not a taxable activity. So far the internal and external electrification done for Noida Authority or Greater Noida Authority, involves disputed tax of Rs. 58,89,91/-. It is urged by the ld. Counsel, that the demand has been raised alleging 'construction of commercial/residential comple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing profit and loss account and balance sheet and the same was disclosed with various departments like Income tax etc. As such there is no basis for the allegation of suppression of facts. Further, at the very first instance on the date of inspection in the statement of the proprietor recorded, it was stated that tax was not paid on these services under dispute as the proprietor believed that these services are not taxable. The ld. Counsel further stated that the stand of the proprietor is supported by the subsequent circular of the C.B.E.C. referred to hereinabove. Accordingly, the extended period of limitation is not invokable and the demand for the extended period is fit to be set aside. 7. The ld. Counsel also relies on the Ruli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elating to supply and erection and fabrication of poles, supply and erection of overhead lines, supply and fabrication of fencing, providing street lights on major roads , providing 16 Meter semi-high Mast fitting in film city sector in Noida, construction of 11/0.4 KV & 400 KVA Sub-station, installation of 250 KVA DG Set, will be taxable under ECIS. 9. Having considered the rival contentions, I find that the Show Cause Notice is vague as it does not state the premises on the basis of which demand have been proposed under 'erection, commissioning and installation service'. Without there being a finding of erection of any such commercial flats/residential complex. The Show Cause Notice is also vague on account of not giving bifurcatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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