2008 (7) TMI 321 - AT - Service Tax

Works contract - Erection, commissioning or installation - demand of service tax on the amounts collected for executing works contract involving laying of pipelines for water supply during the period 1-7-2003 to 31-10-2006 - prior to 1-6-2007, it was not open to the department to vivisect the works contract for levy of service tax on any part of the work - prima facie case for the appellants against demand stay granted

Summary

The Appellate Tribunal CESTAT Chennai found a prima facie case for the appellants against the demand of service tax on amounts collected for executing works contract involving laying pipelines for water supply. The Commissioner of Service Tax imposed penalty, considering the work as 'plant' erection, but the tribunal disagreed. Waiver of pre-deposit and stay of recovery granted for service tax, interest, and penalties.