2009 (9) TMI 568 - AT - Service Tax

Erection Commissioning or Installation Service - The confirmation of service tax and penalty has arisen on the ground that the applicant has been providing services of erection, commission and installation of plant, machinery and equipment at different places belonging to different parties and collected amounts from such parties for the said activities but not paid any service tax to the department. The period involved in this case is from 1-7-2003 to 31-3-2008. Held that - since the assessee had already deposited sum along with interest although collected erroneously, treating same as sufficient, pre-deposit of penalty was to be waived and recovery thereof was to be stayed.

Summary

The appellate tribunal CESTAT, Bangalore, in the case citation 2009 (9) TMI 568, heard a stay petition against the waiver of pre-deposit of a substantial service tax amount, interest, and penalties. The dispute arose from the provision of services related to erection, commission, and installation of plant machinery and equipment between 1-7-2003 to 31-3-2008. The appellant argued that they had discharged service tax obligations as per the assessment by the Department of Commercial Tax, Government of Andhra Pradesh, and cited a similar case where full waiver was granted. The Judicial Member noted that the appellant had undertaken composite contracts, some of which were for labor work, but found merit in the appellant's argument regarding the assessment by the Department of Commercial Tax. Consequently, the tribunal allowed the application for waiver of pre-deposit and stayed the recovery until the appeal's resolution. The Technical Member and Judicial Member presiding over the case were P. KARTHIKEYAN and M.V. RAVINDRAN, respectively. Counsels G. Shivadass and V. Raja Ram represented the appellant and respondent, respectively.