9911796707
TMI Blog2025 (1) TMI 935X X X X Extracts X X X X X X X X Extracts X X X X ..... ntract services to various Govt. agencies / Local bodies / PSUs. Based on audit objection conducted by the Departmental officers, a SCN dated 13.03.2013 was issued to the appellant alleging short payment of service tax amounting to Rs 56,46,244/-, under the category of 'maintenance or repair service' by invoking extended period of limitation. The said Notice was adjudicated vide the Order-in-Original No.09/Comm/ST/SLG/13-14 dated 27.02.2014, wherein the Ld. Commissioner has confirmed the demand of service tax of Rs.56,46,244/- along with interest, under the category of 'maintenance or repair service' and imposed equal amount of tax as penalty under section 78 of the finance Act, 1994. Aggrieved against the confirmation of the demands, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the appellant paid Sales Tax/Vat wherever applicable and that circulars/instructions issued by the Government is binding on the Departmental Officers. Since the demand in this case not been raised under 'Works Contract Service', the demand confirmed under the category of 'maintenance or repair service' is not sustainable. In support of this claim, the appellant relied on the decision of the Tribunal in the case of URC CONSTRUCTION (P) LTD. Versus COMMISSIONER OF CENTRAL EXCISE, SALEM 2017 (50) S.T.R. 147 (Tri. - Chennai), wherein it has been categorically held that the demand confirmed on the basis of incorrect classification of the service is not sustainable. 2.1. The appellant further submits that most of the services rendered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RUL ASSOCIATES INTERIORS PVT. LTD. Versus COMMR. OF S.T., BANGALORE [2016 (46) S.T.R. 373 (Tri. - Bang.)] 2.3. In view of the above submissions, the appellant prayed for setting aside the impugned order and allow their appeal. 3. The Ld. A.R. reiterated the findings in the impugned order. He submits that the appellant has not produced any evidence to substantiate their claim that the services were rendered with materials. Accordingly, he submits that the claim of the appellant that the services rendered by them are classifiable under the category of 'Works Contract Service' is not substantiated. 4. Heard both sides and perused the appeal documents. 5. We observe that the appellant claimed that most of the services rendered by them are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vernment hereby directs that the service tax payable on said taxable services relating to transmission and distribution of electricity provided by the service provider to the service receiver, which was not being levied in accordance with the said practice, shall not be required to be paid in respect of the said taxable services relating to transmission and distribution of electricity during the aforesaid period." 5.1. A perusal of the Notification reveals that the said notification exempts all services rendered in connection with transmission and distribution of electricity. A perusal of the work orders received by the appellant indicates that the appellant has received the work orders from the West Bengal State Electricity Distribution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o indicates purchase and supply of materials by the appellant towards rendering of their taxable services. We observe that the contracts which were treated as works contract for the purpose of levy of VAT/sales tax shall also be treated as works contract for the purpose of levy of service tax. As the contracts in these cases were already trated as 'Works Contract service' for the purpose of levy of VAT, for the materials supplied, we hold that the services rendered by the appellant are appropriately classifiable as 'Works Contract Service' for the purpose of levy of Service Tax. However, we observe that no demand has been raised/confirmed under the category of 'Works Contract Service' in the Notice/impugned order. Accordingly, we hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
