2012 (2) TMI 367 - AT - Service Tax

Determination of nature of activity - whether repair and maintenance or industrial and commercial construction Held that - Matter remitted back to adjudicating authority.

Summary

Issues:
1. Nature of activity: Repair and maintenance vs. industrial and commercial construction.

Analysis:
The judgment by the Appellate Tribunal CESTAT, New Delhi, involved a dispute concerning whether the activity in question constituted repair and maintenance or industrial and commercial construction. The judges noted similar cases from the previous week with a similar issue. Despite the absence of the appellant, the Learned A.R. for Revenue presented the case. The Tribunal decided not to keep the appeal pending and remitted the matter back to the Adjudicating Authority for fresh adjudication. The Adjudicating Authority was directed to analyze the work order thoroughly to determine the nature of the activity, whether it involved repair and maintenance of an existing asset or the creation of a new asset or structure. The judgment emphasized the importance of considering concessions permissible under the law.

Furthermore, the Adjudicating Authority was instructed to consider the Tribunal's previous judgments on the levy of service tax on works contracts in cases like Alstom Projects India Ltd. vs. CST, Delhi, and Instrumentation Ltd. vs. CCE, Jaipur I. The Authority was required to examine all the appellant's submissions and evidence before issuing a reasoned and speaking order regarding any applicable levy under the law. The appellant was directed to appear before the Adjudicating Authority within a month of receiving the order to schedule a hearing date. Ultimately, the stay application and appeal were disposed of in accordance with the directives provided, ensuring a comprehensive re-adjudication of the matter considering all relevant aspects and legal precedents.