2018 (12) TMI 941 - AT - Service Tax

Failure to discharge service tax - classification of services - supply of tangible goods services or convention services - Circular dated 29.2.2008 - time limitation - Held that - The sound systems, LCD projector etc. supplied by the appellant used in organizing various events cannot come within the scope of convention service, but correctly falls under the scope of tangible goods service. The learned Commissioner (Appeals) in the impugned order analyzing the circular dated 9.7.2001 recorded its finding in holding that the same is not applicable to the facts of the present case inasmuch as in the said circular, it was clarified that while providing space for holding convention service, any other ancillary services are also provided then such ancillary services cannot in any manner dilute the classification of the services as convention service . Time limitation - Held that - Since the assessee though registered with Service Tax Department for other services namely, erection commissioning and installations services and paying Service Tax regularly with respect to the said services by filing the ST-3 returns, but never indicated the facts of providing supply of tangible goods services nor disclosed its value to Department, therefore, extended period of limitation is applicable to the appellant s case. In absence of any contrary evidence placed by the appellant rebutting the said findings of the learned Commissioner (Appeals), the impugned order is upheld - appeal dismissed.

Summary

Issues involved:
Classification of services as supply of tangible goods or convention services; Applicability of Service Tax; Limitation period for issuing demand notice.

Classification of services as supply of tangible goods or convention services:
The appellant provided tangible goods like sound systems, LCD projector, etc., on rent but failed to pay Service Tax. The appellant argued that these services should be classified as Convention Services based on circulars issued by the Board. However, the Commissioner (Appeals) upheld the classification as supply of tangible goods services. The Commissioner found that the goods were provided on rent without transferring right of possession and effective control, falling within the definition of taxable entry for supply of tangible goods services. The Commissioner also noted that the goods provided were not exclusively used for convention services, and no evidence was presented to prove otherwise. The circulars cited by the appellant were found inapplicable to the case, leading to the rejection of the appellant's argument.

Applicability of Service Tax:
The demand for Service Tax on the supply of tangible goods was confirmed by the adjudicating authority and upheld by the Commissioner (Appeals). The appellant's contention that demanding Service Tax for temporary supply of goods was contrary to the law was rejected. The Commissioner held that the appellant's actions fell within the scope of taxable entry for supply of tangible goods services, and the demand was justified. The appellant's failure to disclose the value of these services to the Department, despite being registered for other services and paying Service Tax regularly, led to the application of the extended period of limitation.

Limitation period for issuing demand notice:
The Commissioner (Appeals) determined that the extended period of limitation applied to the appellant's case due to their failure to disclose the provision of supply of tangible goods services to the Department. Despite being registered for other services and regularly paying Service Tax for those services, the appellant did not disclose the relevant information, justifying the issuance of the demand notice within the extended limitation period. The Tribunal found no discrepancies in the Commissioner's reasoning and upheld the impugned order, dismissing the appeal.

This comprehensive analysis of the judgment covers the issues of classification of services, applicability of Service Tax, and the limitation period for issuing the demand notice, providing a detailed understanding of the Tribunal's decision.