2023 (7) TMI 545 - AT - Service Tax

Levy of Service Tax - Erection, Commissioning and Installation services (ECIS) - small contractor undertaking various works in the nature of erection and commissioning, repair jobs of transformers, cables, etc., providing services to Andhra Pradesh State Power Distribution Company Ltd (APSPDCL) - HELD THAT - The issue is no longer res integra and the same has been decided in favour of the Appellant by the Coordinate Bench of this Tribunal in the case of SHRI GANESH ENTERPRISES VERSUS COMMISSIONER OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX 2014 (2) TMI 436 - CESTAT BANGALORE wherein, this Tribunal was considering similar issue of services having been provided to the same principal APSPDCL under the heads Management, Maintenance Repair service, ECIS and others. This Tribunal held that the services provided to transmission and distribution company are exempt under Notification No. 45/2010-ST dated 20.07.2010. Thus, the issue is wholly covered by the judgment of the Coordinate Bench in the case of Shri Ganesh Enterprises - impugned order set aside - appeal allowed.

Summary

Issues involved:
The issues involved in the judgment are the liability to pay Service Tax under the head Erection, Commissioning and Installation services (ECIS), demand of Service Tax for the period 01.04.2005 to 31.03.2007 and 01.04.2005 to 31.03.2010, imposition of penalties under sections 76, 77, and 78, and non-filing/late filing of ST3 Returns for the period 2005-06 to 2009-10.

Liability under ECIS:
The Appellant, a small contractor providing services to the Andhra Pradesh State Power Distribution Company Ltd (APSPDCL), was directed by the Revenue to register for Service Tax under the head Erection, Commissioning and Installation services (ECIS). The Revenue proposed demands for amounts payable under ECIS for specific contracts, along with penalties under sections 76, 77, and 78. The Show Cause Notice (SCN) issued was adjudicated confirming the demands and imposing penalties, including a penalty for non-filing/late filing of ST3 Returns.

Appeal and Commissioner's Decision:
The Appellant appealed before the Commissioner (Appeals), who partially allowed the appeal by granting abatement for the material component under ECIS. The Commissioner observed that no demand under ECIS could be made prior to 16.06.2005 as the service tax was applicable only after that date. The penalty under section 76 was set aside by the Commissioner.

Tribunal's Decision:
The Appellant, aggrieved by the Commissioner's decision, approached the Tribunal. The Appellant's counsel argued that a similar issue had been decided in favor of the Appellant by a Coordinate Bench of the Tribunal in a previous case involving services provided to the same principal, APSPDCL. The Coordinate Bench had held that services provided to transmission and distribution companies are exempt under Notification No. 45/2010-ST. Citing this precedent, the Tribunal set aside the Impugned Order and allowed the Appeal, granting the Appellant consequential benefits in accordance with the law.

Separate Judgement by Judges:
The judgment was delivered by Hon'ble Mr. Anil Choudhary (Judicial) and Hon'ble Mr. A.K. Jyotishi, Member (Technical) of the Appellate Tribunal CESTAT HYDERABAD.