2005 (1) TMI 5 - AAR - Service Tax

Demand of Service Tax erection of transmission lines for State Electricity Boards - Eligibility to be appropriate for advance ruling - Whether Erection of Transmission Lines for State Electricity Boards etc. Transmission Line is not covered under Plant as such it does not fulfill the requirements of the definition of the applicant under the Act - it cannot be treated as an applicant within the meaning of the said term. The application is therefore not maintainable.

Summary

Issues:
1. Eligibility of the applicant under Section 96A of the Finance Act, 1994 for seeking an advance ruling.

Analysis:
The judgment delivered by the Advance Ruling Authority (AAR) in New Delhi pertains to an application filed by M/s. Om Construction seeking an advance ruling under Section 96C(1) of the Finance Act, 1994. The applicant, a resident of India engaged in the erection of transmission lines for State Electricity Boards, raised a query regarding the applicability of Service Tax on the erection of transmission lines, contending that it is not covered under Plant & Machinery and Equipments. However, the Authority noted that the application did not meet the requirements of the definition of "applicant" as per Clause (b) of Section 96A of the Act. The definition of "applicant" includes a resident setting up a joint venture in India in collaboration with a non-resident. Since M/s. Om Construction failed to provide evidence demonstrating collaboration with a non-resident for setting up a joint venture in India, it did not fulfill the criteria of the "applicant" under the Act.

Therefore, based on the lack of evidence establishing a joint venture with a non-resident, M/s. Om Construction was deemed ineligible as an "applicant" within the meaning of the Act. Consequently, the application was found to be not maintainable and was rejected by the Authority. The decision underscores the importance of meeting the statutory requirements for seeking an advance ruling under the Finance Act, emphasizing the need for applicants to adhere to the defined criteria to avail themselves of the benefits of advance rulings on tax matters.