2014 (1) TMI 1504 - AT - Service Tax

Waiver of pre deposit - Imposition of penalty - commercial or industrial construction service - Held that - The Board clarified to the effect that if the construction of road is integral part of a composite contract comprising several pieces of construction works, the value of road construction should also be included in the gross taxable value. In the instant case, it has been claimed that the appellant undertook only construction of road along with allied works for the benefit of the service recipient. On a perusal of the work order available on record, we have found substance in this claim. If that be so, prima facie, a major part of the impugned demand is not sustainable - Stay granted.

Summary

Issues Involved:
Delay in filing the appeal and condonation of delay, stay application seeking waiver and stay of service tax and education cess demand, exclusion of road construction from 'commercial or industrial construction service', reliance on legal precedents and circulars for exemption.

Delay in Filing the Appeal and Condonation of Delay:
The judgment addresses a delay of 12 days in filing the appeal, which the appellant seeks to be condoned. After hearing both sides, the Tribunal found a satisfactory explanation for the delay and allowed the condonation of delay application.

Stay Application Seeking Waiver and Stay of Demand:
The appellant filed a stay application seeking waiver and stay in relation to a demand of Rs. 4,38,237/- for service tax and education cess for the period from May 2006 to June 2008, along with penalties. A significant portion of the demand, amounting to Rs. 2,99,976/-, was related to service tax and education cess under the category of 'commercial or industrial construction service' for the period from April to June 2007. The appellant claimed to have undertaken road construction for a specific corporation and contended that this work should be excluded from service tax under the said category. The appellant cited a previous Tribunal decision and relevant circulars to support their claim. Upon reviewing the work order, the Tribunal found merit in the appellant's claim, indicating that a major part of the demand may not be sustainable. Consequently, the Tribunal granted waiver of pre-deposit and stay of recovery for the adjudged dues.

The judgment showcases a detailed analysis of the issues at hand, including the delay in filing the appeal, the specific demand for service tax and education cess, the exclusion of road construction from the taxable category, and the legal references relied upon by the appellant. By examining the evidence presented, such as the work order, the Tribunal made a reasoned decision to grant relief to the appellant based on the merits of the case and relevant legal principles. The judgment highlights the importance of providing a satisfactory explanation for delays and utilizing legal precedents and circulars to support legal arguments effectively in tax matters.