2011 (4) TMI 1150 - AT - Service Tax

Demand of Service tax - respondents are providing site formation and clearance, excavation and earth moving and demolition services - Revenue wants to impose a service tax on respondents as provider of cargo handling services Held that - in the case of Warner Hindustan Ltd. (1999 - TMI - 45233 - SUPREME COURT OF INDIA), Revenue can not make out a new case at Tribunal stage and it is not permissible for the Tribunal to consider a case laid for the first time in appeal, no merit in the appeal is dismissed

Summary

Issues:
1. Whether the demand for service tax on the respondents is valid based on the services provided.
2. Can the Revenue impose service tax on the respondents as providers of cargo handling services.

Analysis:
1. The appeal was filed by the Revenue against an adjudication order demanding service tax from the respondents for providing site formation, clearance, excavation, earth moving, and demolition services. The adjudicating authority, after reviewing the contract, concluded that the appellants were offering mining services falling under service tax from a specific date. However, since the demand was prior to this period, the proceeding was dropped. The Revenue then appealed to impose service tax on the respondents as cargo handling service providers.

2. The Tribunal noted that the show-cause notice specifically classified the services as site formation, clearance, excavation, and demolition services. Therefore, the attempt to demand service tax by treating the respondents as cargo handling service providers introduced new grounds not covered in the notice. Referring to the case of Warner Hindustan Ltd. v. Collector of Central Excise, Hyderabad, the Tribunal emphasized that introducing a new case at the appellate stage is impermissible. The Tribunal cited the Supreme Court's ruling that it is not allowed for the Revenue to present a new case at the Tribunal stage, and the Tribunal cannot consider a case introduced for the first time in an appeal. Consequently, the Tribunal found no merit in the appeal and dismissed it.

In conclusion, the Tribunal upheld the decision of the adjudicating authority, emphasizing that the Revenue could not introduce new grounds for imposing service tax at the appellate stage. The judgment highlighted the importance of adherence to the show-cause notice and the prohibition against raising new cases during the appeal process, as established by legal precedents.