2010 (6) TMI 275 - AT - Service Tax

Service of Erection Commissioning and Installation - appellant engaged in fabrication of structures at site for their clients which activity amounts to manufacture resulting in emergence of excisable items - no Excise duty is being paid on the same as the same is exempted in terms of Notification No. 67/1995 - fabrication of various goods at site does not amount to manufacture as has been held in various decisions of the Tribunal like in the case of Dodsal (P.) Ltd. v. CCE 2006 (193) ELT 518 (Trib. - Mum.) and others Held that - activity undertaken by the appellant amounts to manufacture in terms of provisions of section 2(f) of Central Excise Act no service tax can be levied.

Summary

Issues involved:
1. Whether the appellant is liable to pay service tax for providing 'Erection, Commissioning, and Installation' services or engaged in the manufacture of excisable goods exempted from Excise duty.

Analysis:
1. The appellant contended that their activity of fabricating structures at the site for clients amounts to manufacturing excisable items exempted from Excise duty. The Commissioner rejected this plea, citing precedents like Dodsal (P.) Ltd. v. CCE 2006 (193) ELT 518 (Trib. - Mum.).
2. The appellant referred to a recent order in Neo Structo Construction Ltd. v. CCE&C [2010] 27 STT 1 (Ahd. - CESTAT), where a similar issue was discussed. The Bench, aligning with the Mahindra & Mahindra Ltd. v. CCE 2005 (190) ELT 301 (Trib. - Delhi)(LB) decision, held that fabricating structures at the site amounts to manufacturing excisable goods. The earlier Dodsal (P.) Ltd. ruling was not accepted. The Revenue agreed that the Neo Structo Construction Ltd. decision applied to the current case.
3. Consequently, the Tribunal set aside the impugned order, allowing the appeal and providing consequential relief to the appellant.