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Issues involved: Appeal against service tax demands for maintenance and repair services without a maintenance contract and registration.
Summary: The appeal was filed against the confirmation of service tax demands for maintenance and repair services provided to transformers without registration and following the procedure for paying service tax. The appellants argued that the activity did not fall under the definition of maintenance or repair service u/s 65(64) of the Finance Act until a certain date and that they did not have a maintenance contract, only a work order. They relied on a previous decision by the Bench which held that service tax is not applicable when there is no contract before a specific date. The Tribunal examined the case and found that the appellants did not have a maintenance contract with their customers, making them not liable to pay service tax before a certain date. The Director General's clarification was deemed contrary to government instructions, and the adjudicating authority erred in relying on it without notifying the appellants. The Tribunal concluded that the appellants were not liable to pay service tax for the period before the specified date due to the absence of a maintenance contract. No penalty was deemed leviable on the appellants in this situation, and the impugned order was set aside with the appeal allowed. The Departmental Representative reiterated the department's view, but the Tribunal, after considering both sides' submissions, applied the ratio of a previous judgment to the case, where it was established that the appellants were not working under any contract. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief.
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