2014 (1) TMI 997 - AT - Service Tax

Denial of CENVAT Credit - Works contracts of laying of electrical lines, construction of sub-stations and erection, installation and commissioning of electrical transformers, etc., for Andhra Pradesh State owned power distribution companies - Held that - Notification No. 45/2010-S.T., dated 20-7-2010 provides for exemption to the service provided relating to distribution and transmission of power from 16-6-2005. Since prima facie the issue appears to be covered by the exemption notification, we consider that there is no need for pre-deposit in this case - Stay granted.

Summary

The Appellate Tribunal CESTAT BANGALORE ruled in favor of the appellant, an electrical contractor, regarding a Service Tax demand of Rs. 47,26,435/- with penalties. They also denied Cenvat credit of over Rs. 19 lakhs. The tribunal found that the issue was covered by Notification No. 45/2010-S.T., providing exemption for services related to power distribution and transmission from 16-6-2005. Pre-deposit requirement was waived, and stay against recovery was granted during the appeal.