2014 (7) TMI 788 - AT - Service Tax

Demand of service tax - erection, commissioning or installation services - Held that - Circular of the Board which provides that laying of electric cables upto distribution point of residential or commercial localities/complex is not a taxable service under the category of erection, commissioning or installation . As such at this stage, appellant has a good prima facie case in its favour so as to allow the stay petition unconditionally - stay granted.

Summary

Issues: Delay in filing appeal, Stay petition regarding tax demand and penalties

The judgment by the Appellate Tribunal CESTAT New Delhi addressed the issue of delay in filing the appeal, which was attributed to the proprietor of the appellant-company being away and falling sick. The delay of 30 days was considered on the lower side, leading to the condonation of the delay and the allowance of the COD application.

Regarding the stay petition, the tribunal noted that a demand of &8377; 22,53,205/- was confirmed against the appellant, along with penalties under sections 77 and 78 of the Finance Act, 1994. The demand was related to the appellant providing services to M/s. Rajasthan Vidyut Vitran Nigam Ltd. and “rent-a-cab” services. The appellant argued that the services provided were not taxable under the Finance Act, citing a Board circular. The tribunal examined the circular and agreed that the appellant had a prima facie case in its favor. Consequently, the stay petition was allowed unconditionally.

In conclusion, the tribunal addressed the delay in filing the appeal and granted condonation due to valid reasons. Additionally, the tribunal considered the appellant's argument regarding the tax demand and penalties, finding merit in the prima facie case presented based on the Board circular. The stay petition was allowed in favor of the appellant.