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2009 (1) TMI 115 - AT - Service TaxTotal Energy System (TES) installed by appellant, at the site of the clients, under turnkey contract - demand under the category Business Auxiliary Service (BAS) on the margin earned by appellant in purchase of components required for installing Total Energy System (TES) - since said activity is a part of various transactions entered into by assessee for installing TES at the sites of its clients, same could not be held to be service rendered by assessee to its clients
The Appellate Tribunal CESTAT CHENNAI ruled in favor of M/s. Cethar Vessels Pvt. Ltd. (CVPL) in a case involving demand of Rs. 1,11,628 for services rendered under 'Business Auxiliary Service' category. The tribunal found that the activity in question was not a service rendered by CVPL to its clients but part of transactions for installing 'Total Energy System' at client sites. The demand and penalties imposed were deemed unsustainable, and the appeal by CVPL was allowed.
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