2008 (10) TMI 159 - AT - Service Tax

Whether the activity of laying pipeline for the Municipality could be taxed under the head Erection, Commissioning and Installation Services as claimed by the Revenue or under the head Works Contract Service claimed by the assessee - appellants were working as sub-contractors - and department has also raised separate demand of service tax on main contractor which is pending before this Bench - similar demand vacated by tribunal in case of Indian Hume Pipes Co. Ltd. - prima facie case against the impugned demand say granted

Summary

The appellate tribunal in Chennai examined a case involving taxation of services provided under an agreement with Mayiladurai Municipality. The issue was whether the services should be taxed under "Erection, Commissioning and Installation Services" or "Works Contract Service." A demand of over Rs. 71 lakhs was made by the Revenue, but the appellants established a prima facie case against the demand. The tribunal waived pre-deposit and stay of recovery for the appellants, and the appeal was to be clubbed with another pending case for final hearing.