2016 (8) TMI 1194 - AT - Service Tax

Erection, commissioning and installation/Works Contract Services - N/N. 45/2010-ST dt. 20/07/2010 - Department is of the view that these services will not get benefit of any exemption and tax liability will accrue to the appellant - Held that - the matter is fully covered in favour of the appellant in the case of Kedar Constructions Vs. CC&CE, Kolhapur 2014 (11) TMI 336 - CESTAT MUMBAI , where it was held that Various activities undertaken by the appellant, though classifiable under Commercial or Industrial Construction prior to 01.06.2007 or under works contract service on or after 01.06.2007, would be eligible for the benefit of exemption - appeal allowed - decided in favor of appellant.

Summary

Issues:
Dispute regarding Works Contract Services for erection of sub-stations and lines - Applicability of exemption - Tax liability determination.

Analysis:
The judgment by the Appellate Tribunal CESTAT Hyderabad involved a dispute concerning Works Contract Services provided by the appellant for the erection of sub-stations and lines. The Department contended that these services were not exempt and imposed a tax liability of ?11,89,958 along with interest and penalties. However, during the hearing for a stay, both parties consented to dispose of the main appeal. The appellant's advocate highlighted the Board's Notification No. 45/2010-ST and various Tribunal decisions favoring the appellant based on this notification.

The Tribunal acknowledged previous decisions favoring the appellant in similar cases, citing instances like Shri Ganesh Enterprises Vs. CCE&ST, Hyderabad-III and Kedar Constructions Vs. CC&CE, Kolhapur. Considering the Board's notification and the precedents, the Tribunal found the matter fully in favor of the appellant. Consequently, the appeal was allowed, and any consequential reliefs were granted as per the law. The stay petition was also disposed of during the proceedings.

In conclusion, the judgment provided a comprehensive analysis of the dispute regarding Works Contract Services, the applicability of exemptions, and the determination of tax liabilities. The Tribunal's decision was based on legal precedents, relevant notifications, and the arguments presented by both parties, ultimately resulting in a favorable outcome for the appellant.