2019 (2) TMI 383 - AT - Service Tax

Non-payment of Service Tax - Erection and Commissioning or Installation Services - installation of street light, traffic lights, flood lights and other electrical and electronic main appliances/devices to various authorities - period April 2011 to March 2012 - Held that - In their own case, for Nanded Waghala City Municipal Corporation, this Tribunal has decided the issue against them reported as Royal Electricals Vs. Commissioner of Central Excise, Pune-I 2017 (11) TMI 298 - CESTAT MUMBAI , where it was held that The service of installation of street lights being an independent service clearly falls under works contract service and during the relevant period it was taxable - demand upheld - appeal dismissed - decided against appellant.

Summary

Issues:
Appeal against Order-in-Appeal passed by Commissioner of Central Excise, Customs & Service Tax, change of name of appellant, failure to pay service tax on installation services, challenge based on previous Tribunal decision, suppression of facts by appellant.

Analysis:
1. Change of Name Application: The appellant filed a miscellaneous application seeking a change of name from "M/s. Royal Electricals" to "M/s. Royal Power Turnkey Implements Pvt. Ltd." due to a takeover. The application was supported by relevant documents, and the change was allowed by the tribunal.

2. Failure to Pay Service Tax: The appellant provided taxable services related to installation of street lights, traffic lights, etc., but failed to pay the corresponding service tax for the period April 2011 to March 2012. A show cause notice was issued for recovery of the tax amount along with interest and penalty. The demand was confirmed upon adjudication, leading to the present appeal.

3. Challenge Based on Previous Tribunal Decision: The appellant's advocate acknowledged a previous unfavorable decision by the Tribunal in a similar case involving the appellant. Despite an appeal to the Bombay High Court against the decision, no stay had been granted, and the Tribunal upheld the demand for service tax based on the previous ruling.

4. Suppression of Facts: The Tribunal noted that the appellant had not declared the transaction of works contract services in their returns despite being aware of the taxability. This non-disclosure was considered as a suppression of facts by the appellant, leading to the confirmation of the demand for service tax.

5. Final Decision: After hearing both sides and examining the records, the Tribunal upheld the impugned order confirming the demand for service tax, interest, and penalty. The appeal was dismissed, citing no reason to deviate from the previous Tribunal's observation on the matter.

This detailed analysis of the judgment provides insights into the issues involved, the arguments presented, and the final decision rendered by the Appellate Tribunal CESTAT MUMBAI, preserving the legal nuances and significant details from the original text.