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Issues involved: Appeal against demand of service tax under installation, erection, and commissioning service; eligibility for abatement under Notification No.12/2003.
Issue 1: Appeal against demand of service tax under installation, erection, and commissioning service The appellant contested a show-cause notice demanding service tax for the activity of installation, erection, and commissioning of telecommunication towers. The appellant argued that they were covered under works contract and not liable to pay service tax under erection and commissioning service. The lower authorities found the appellant entitled to abatement on the portion of the contract amount on which they had paid VAT, reducing the service tax demands. The Revenue appealed against the order of abatement, leading to the current appeal. Issue 2: Eligibility for abatement under Notification No.12/2003 The Revenue argued that the lower authorities did not examine the issue of abatement in light of the amendment under Notification No.12/2003, which clarified that the benefit is available only if no credit of input/input service is availed. Upon review, it was found that there was no evidence to prove that the appellant had availed Cenvat credit of input/input service during the period in question. As a result, the impugned order was upheld, and the appeal by the Revenue was dismissed. *(Dictated in Court)*
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