2005 (9) TMI 330 - AT - Service Tax

Summary

Issues:
1. Dispute over service tax demand for Radio Paging service.
2. Inclusion of reconnection charges in the value of taxable service.

Analysis:
1. The appellants contested a portion of the Order-in-Appeal confirming a service tax demand of Rs. 64,308/- for the period 1-11-1996 to 39-9-1999 under Radio Paging service. Despite multiple notices, the appellants failed to appear, leading to consideration of the appeal on merits. The Commissioner (Appeals) upheld the tax demand but set aside penalties under Sections 76 and 78 of the Finance Act, deeming them without jurisdiction. The appellants' sole contention was against adding reconnection charges to the taxable service value.

2. The learned SDR argued in favor of including reconnection charges, asserting they constitute a taxable service akin to connection charges. Both lower authorities extensively justified the inclusion of Rs.100/- per pager reconnection fees in the taxable service value, aligning with the Ministry's Circular of 20-12-2000, which focused on surcharges rather than reconnection fees. The Tribunal concurred with the authorities' reasoning, finding no merit in the appeal and subsequently dismissing it.

In conclusion, the Tribunal upheld the service tax demand for Radio Paging service, including reconnection charges in the taxable service value based on detailed justifications provided by the lower authorities and in line with relevant Ministry circulars. The appeal was dismissed, affirming the tax liability and rejecting the appellants' challenge regarding the inclusion of reconnection charges.