2019 (6) TMI 1070 - AT - Service Tax

Levy of Service Tax - appellant provided to government authorities in respect of erection, commissioning and installation of water treatment plant - HELD THAT - The appellant had submitted the contract agreement with various government authorities from which it can be seen that whether the service provided by the appellant is for commercial purpose or for other public amenities. Despite the contract submitted to the original authority, he has not considered the same properly. As regard the claim of the appellant that the services are of work contract as the same was provided as turnkey project with material and work contract tax was paid in this regard. The necessary document was not produced before the original authority, now he has produced certain documents such as, CA Certificate, payment of work contract tax, etc., therefore the entire matter needs to be re-considered - appeal allowed by way of remand.

Summary

Issues involved: Whether the service provided by the appellant to government authorities for the erection, commissioning, and installation of a water treatment plant is liable to service tax or not.

Analysis:
The appellant's counsel argued that the service provided was not for commercial purposes but for public amenities, as evidenced by the contract agreement with government authorities. He referred to a Supreme Court judgment stating that work contracts like turnkey projects were not taxable before a certain date. However, he admitted that certain documents, such as payment of work contract tax, were not submitted before the original authority.

The Revenue's representative reiterated the findings of the impugned order, supporting the demand for service tax.

Upon considering both sides' submissions, the Tribunal noted that the original authority did not properly consider the contract agreements submitted by the appellant to determine the commercial nature of the services provided. The appellant had also not initially provided all necessary documents, but later submitted additional evidence like a CA certificate and proof of work contract tax payment. Therefore, the Tribunal decided to set aside the impugned order and remand the matter to the original authority for a fresh decision on all issues, emphasizing the need for a comprehensive reconsideration.