2008 (1) TMI 374 - HC - Service Tax

According to Revenue Electro Homeopathy consultation and activity of hair bonding/hair weaving, sale of wigs, clips, etc. comes under the category of beauty treatment under the heading beauty parlour service tribunal looking into the nature of business activities and upholding the OIA returned the finding of fact that impugned activity would not fall under the heading beauty parlour service OIA also elaborate and detailed order assigned reasons so revenue appeal is dismissed

Summary

Issues:
Interpretation of service tax liability for activities related to Electro Homeopathy consultation, hair bonding/weaving, and sale of wigs.

Analysis:
The case involved an appeal by the Commissioner of Central Excise challenging an order passed by the Customs, Excise and Service Tax Appellate Tribunal regarding the service tax liability of an assessee engaged in Electro Homeopathy consultation, hair bonding/weaving, and sale of wigs. The appellant argued that these activities fell under the category of beauty treatment, specifically beauty parlour service, thus attracting service tax. The original authority upheld the demand, but the Commissioner ruled in favor of the assessee, setting aside the demand. The Tribunal also concluded that the activities did not qualify as beauty parlour service, hence not liable for service tax.

The High Court, in its judgment, noted that the Tribunal's decision was based on a detailed analysis of the nature of the business activities conducted by the assessee. The Court highlighted that the Commissioner (Appeals) and the Appellate Authority had provided comprehensive reasons for determining that the activities did not fall under the classification of "beauty treatment" or "beauty parlour service." The Court found no grounds to interfere with the factual findings of the Tribunal, emphasizing the thorough reasoning provided by the lower authorities.

Ultimately, the High Court held that there was no merit in the appeal brought by the Commissioner of Central Excise. The Court dismissed the appeal, affirming the Tribunal's decision that the assessee was not liable to pay service tax for the activities related to Electro Homeopathy consultation, hair bonding/weaving, and sale of wigs. The judgment underscored the importance of a detailed analysis of business activities to determine the applicability of service tax, emphasizing the need for clear reasoning in such matters.