2014 (3) TMI 542 - AT - Service Tax

Interior Decorator service - Scope of taxable service - Section 65(59) - drawing and design is supplied to the applicants for execution of work contract - Held that - As per the definition of scope of interior decorator as per the Finance Act. Is in respect of advice, consultancy or technical assistance relating to complying drawing or design or number of space. In the present cased drawing and design is supplied to the applicants for execution of work. The copies of the work orders which are produced by the respondents the work is in respect of civil work, electrical work etc - execution of civil work, sanitation work, plumbing, electrical work and wooden furniture is not covered under the scope the interior decorator service. As there is no evidence on record to show that respondents are advicing by way of consultancy or by way of technical assistance, in respect of planning or designing of the space, rather applicants are undertaking the other work as per the design and drawing supplied - Decided against Revenue.

Summary

Issues:
1. Appeal against the impugned order passed by the Commissioner (Adjudication) Central Excise, Mumbai regarding service tax on interior decorating services.
2. Interpretation of the definition of "Interior Decorator" under Section 65(59) of the Finance Act, 1994.
3. Determination of whether the respondents provided services falling under the category of interior decorator.

Analysis:
The appeal was filed by the Revenue against the impugned order passed by the Commissioner (Adjudication) Central Excise, Mumbai, demanding service tax from the respondents for providing services as an "Interior Decorator" under Section 65 of the Finance Act, 1994. The Revenue contended that the respondents undertook activities like renovation, partitioning, false ceiling, and furnishing, which fell under the scope of interior decorating services. The respondents, however, argued that they received contracts for civil works such as plastering, painting, electrical works, flooring, and partitioning, and provided evidence of work orders specifying civil and electrical works. They maintained that they executed the work as per the drawing and designs supplied by the service recipients, thus not falling under the definition of an interior decorator.

Upon examining the provisions of Section 65(59) of the Finance Act, the Tribunal noted that the definition of an "Interior Decorator" includes providing services related to planning, design, or beautification of spaces. Referring to a previous tribunal case, the Tribunal established that execution of civil work, sanitation work, plumbing, electrical work, and wooden furniture does not fall under the scope of interior decorator services. The Tribunal observed that there was no evidence to show that the respondents provided advice, consultancy, or technical assistance related to planning or designing of spaces. Instead, the respondents executed the work based on the designs supplied to them. Consequently, the Tribunal found no merit in the Revenue's appeal and dismissed it, upholding the impugned order passed by the Commissioner (Adjudication) Central Excise, Mumbai.

In conclusion, the Tribunal's detailed analysis of the definition of "Interior Decorator" under the Finance Act, 1994, and the specific nature of services provided by the respondents led to the dismissal of the Revenue's appeal. The judgment clarified that mere execution of civil and electrical works based on supplied designs does not constitute services falling within the ambit of an interior decorator, emphasizing the importance of evidence regarding advice, consultancy, or technical assistance in such cases.