2008 (1) TMI 369 - AT - Service Tax

Demand under category of erection commissioning and installation - appellants contention is that they were manufacturer of structures as a sub-broker and the activity would get covered w.e.f. 2006 onwards in which case the taxes would come down around Rs.16 lakhs - They have already deposited an amount of Rs.10 lakhs - applicant is directed to to further deposit Rs. 10 lakhs against demand of duty of Rs.1, 71, 23, 778/- - stay partly granted

Summary

The Appellate Tribunal CESTAT, Ahmedabad confirmed a duty demand of Rs.1,71,23,778/- as service tax against the appellant, along with penalties. The appellant claimed to be a manufacturer of structures, not a service provider, which would reduce taxes to around Rs.16 lakhs from 2006 onwards. The tribunal directed the appellant to deposit Rs.10 lakhs within eight weeks, with the balance amount of duty and penalty waived upon compliance by 11-3-2008. The application was disposed of accordingly.