2014 (12) TMI 964 - AT - Service Tax

Consulting Engineer s Services - Executing the work of construction of mess, quarters etc. for the staff of Assam Rifles - Held that - Dispute centers round the services rendered by the Appellant to the Director General of Assam Rifles in executing the works of construction of quarters and mess for the staff of Assam Rifles. We find from the submission of the ld. Advocate for the Appellant that the issue is highly debatable and accordingly, the same ought to be examined in detail, before arriving at a conclusion as to whether the services rendered by the Appellant to the Director General of Assam Rifles would fall under the category of Consulting Engineer s Services or otherwise. Considering the fact that the Appellant is a public sector undertaking of Government of India, it is appropriate to remit the case to the ld. Commissioner (Appeals) for deciding the issue on merits, without insisting any predeposit. In the result, the impugned Order is set aside, and the matter is remitted to the ld. Commissioner (Appeals) for deciding the issue afresh. - Decided in favour of assessee.

Summary

Issues involved: Application for waiver of predeposit of Service Tax and penalties, non-production of clearance certificate from the Committee on Disputes, classification of services under 'Consulting Engineer's Services', remand to Commissioner (Appeals) for deciding the issue on merits.

Analysis:
The Appellant filed an Application seeking waiver of predeposit of Service Tax amount and penalties imposed under the Finance Act, 1994. The Tribunal had earlier dismissed the Appeal and Stay Petition due to the non-production of a clearance certificate from the Committee on Disputes. The Appellant then approached the High Court, which restored the Appeal. The Advocate for the Appellant argued that the services provided did not fall under 'Consulting Engineer's Services' as alleged by the Department, emphasizing that the Appellant had executed the projects mentioned in the work orders. The Revenue's representative had no objection to remanding the matter to the Commissioner (Appeals) for a decision on merits.

The Tribunal found that the Commissioner (Appeals) had not decided the issue on merit but dismissed the appeal for non-compliance with the predeposit requirement. The dispute revolved around the services rendered by the Appellant to the Director General of Assam Rifles for construction works. Considering the debatable nature of the issue, the Tribunal remitted the case to the Commissioner (Appeals) for a detailed examination without insisting on any predeposit. The Tribunal highlighted the need for a thorough evaluation to determine whether the services provided would indeed classify as 'Consulting Engineer's Services'. The case was set aside, and both parties were granted the opportunity to present evidence in support of their positions. The Appeal was allowed by way of remand, and the Stay Petition was also disposed of.