TMI Blog2018 (8) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... l in the category of any taxable service defined by subsection 105 of Section 65 to the Finance Act, 1994, Commissioner (Appeal) has held accordingly. Revenue is not challenging the reliance placed by the Commissioner (Appeal) on the said circular, but it is challenging the order of Commissioner (Appeal) on the ground that the same has traveled beyond the scope of show cause notice as the issue was in respect of classification of services and admissibility of abatement under N/N. 1/ 2006-ST. - If some activity has been clarified to be not taxable, then revenue cannot take a stand that activity would fall under any taxable category, because of the reason that show cause notice raised dispute of classification. Revenue has in their appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... travelled beyond the scope of show cause notice as the issue involved in the notice was in respect of classification of services whether as Commercial or Industrial Constru ction Service or as Erection, Commissioning and Installation Services. And whether the benefit of abatement as provided under notification No 01/ 2006 -ST dated 01.03.2006 was admissible to them. However the Commissioner (Appeal) has decided that activity undertaken by the appellant do not attract service tax. ii. Since the notice was issue within normal period of limitation, Commissioner (Appeals) finding that the extended period of limitation invoked in the present case is not sustainable is irrelevant 2.0 Respondents are engaged in business activity of layin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ables under or alongside roads/ railway tracks; between grids/ sub -stations/ transformers the distribution points of residential or commercial complexes and such activities as electrification of railways, installation of street -lights, traffic lights, flood -lights. This clarification takes into account the taxability of different activities taking into account the scope of all services (such as site formation/ excavation/ earth moving service, commercial or industrial construction services; erection, commissioning or install ation services; or works -contract service) that are presently taxable as well as those which are covered under the Finance Act, 2010. 2. Scope of certain taxable services in brief; (i)) Commercial or indu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roperty in goods involved is leviable to a tax as sale of goods) rather than the nature of activities undertaken, that distinguishes it from the previously stated taxable services. Thus, even in the case of works contract if the nature of the activities is such that they are excluded from aforesaid two services then they would generally remain excluded from this taxable service as well. (iv) site formation and clearance, excavation, earthmoving and demolition services are attracted only if the service providers provide these services independently and not as part of a complete work such as laying of ca bles under the road 3. The taxable status of various activities, on which disputes have arisen . Based on the foregoing, the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e distribution point of residential or commercial localities/ complexes. Taxable servi ce, namely commercial or industrial construction or construction of complex service [section 65(105) (zzq)/ (zzzh)], as the case may be. 7. Installation of street lights, traffic lights flood lights, or other electrical and electronic appliances/ devices or providing electric connections to them Taxable service, namely Erection, commissioning or installation services [section 65 (105] (zzd]. 8. Railway electrification, electrification along the railway track Not a taxable service under any clause o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... From the text of the Circular it is quite evident that it has been issued resolving the disputes raised in respect of various activities detailed in table in the Circular in respect of the classification of the same under various categories such as Commercial or industrial construction services , Erection, commissioning or installation services or Works Contract and suitable clarifications in respect of each activity has been given by the said circular. If some activity has been clarified to be not taxable, then revenue cannot take a stand that activity would fall under any taxable category, because of the reason that show cause notice raised dispute of classification. Revenue has in their appeal not even challenged the applicability o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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