2015 (2) TMI 1016 - AT - Service Tax

Erection, Commissioning or Installation Service - Notification No.45/2010-ST, dated 20.07.2010 - Held that - inquiries conducted on the activities of the appellant revealed that they have provided services, which includes earth excavation, stub setting, concreting tower erection, stringing power conductors and earth wire and also construction of revetment, construction of control room retaining walls etc. The activities would be classifiable under Erection, Commissioning or Installation Service. - impugned order is set aside and the matter is remanded back to the Adjudicating authority to decide afresh in the right of the Exemption Notification in accordance with law - Application disposed of.

Summary

Issues involved:
Classification of services under Erection, Commissioning, or Installation Service; Interpretation of Notification No. 45/2010-ST regarding exemption from service tax for transmission and distribution of electricity; Remand of the case to Adjudicating authority for detailed examination.

The judgment by the Appellate Tribunal CESTAT CHENNAI addressed the issue of classification of services provided by the appellant for civil construction work for Tamil Nadu Electricity Board. The Tribunal noted that the activities undertaken, such as earth excavation, tower erection, and construction of control room, could be classified under Erection, Commissioning, or Installation Service. The Tribunal considered the contentions put forth by both parties regarding the applicability of Notification No. 45/2010-ST, which exempted service tax for transmission and distribution of electricity. The appellant argued that the exemption applied, while the Revenue contended that only certain portions of the services related to transmission and distribution of electricity. The Tribunal decided to remand the case back to the Adjudicating authority for a detailed examination in light of the Exemption Notification and the specific activities carried out by the appellant. The impugned order was set aside, and the appeal was allowed by way of remand, with the stay application being disposed of.

In conclusion, the judgment focused on the classification of services provided by the appellant and the interpretation of Notification No. 45/2010-ST regarding the exemption from service tax for transmission and distribution of electricity. The Tribunal emphasized the need for a thorough examination by the Adjudicating authority to determine the applicability of the exemption in accordance with the law. The decision to remand the case back for detailed consideration demonstrates the importance of a precise analysis of the activities undertaken by the appellant to ascertain the correct tax liability.