2014 (9) TMI 250 - AT - Service Tax

Availing benefit of abatement on Management, maintenance & repair services - Applicability of Notification No.1/2006-ST, dt.1.3.2006 - nature of activity - Held that - Whether the services provided by the appellant could also be classified as works contract service was also not agitated before the lower authorities. The issues involved in these appeals is required to be remanded back to the adjudicating authority as the issue of Service Tax on Railway work Electrification under Railway Ministry already stands remanded to the adjudicating authority by Commissioner (Appeals). Appellant is required to clearly spell out all their view points before the adjudicating authority for clearly bringing out the issues for deliberations and whether the services provided by them also satisfy the definition of works contract services for non-levy of Service Tax - matter remanded back for fresh decision - Decided in favor of assessee.

Issues:
1. Non-filing of ST-3 returns for a specific period.
2. Claiming exemption for services provided for public infrastructure.
3. Admissibility of benefit under Notification No.1/2006-ST.
4. Rejection of claims on various issues by adjudicating authority.
5. Classification of services as works contract services.

Issue 1 - Non-filing of ST-3 returns:
The appellant, engaged in service provision, failed to file ST-3 returns for the period April 2007 to March 2011. Upon scrutiny, it was found that amounts received towards exempted services were not properly accounted for. The appellant later filed the returns but discrepancies were noted by the Revenue.

Issue 2 - Claiming exemption for public infrastructure services:
The appellant claimed exemption for services provided for public infrastructure projects based on CBEC Circulars. However, the Revenue disputed the applicability of these exemptions and issued show cause notices regarding the demand of Service Tax on specific categories of services.

Issue 3 - Admissibility of benefit under Notification No.1/2006-ST:
The appellant availed benefits under Notification No.1/2006-ST in certain cases, but the Revenue contended that these benefits were not admissible as the services provided did not align with the nature of the notification. The adjudicating authority rejected the claims made under this notification.

Issue 4 - Rejection of claims by adjudicating authority:
The adjudicating authority rejected the appellant's claims on various issues, including the nature of services provided and the applicability of specific Circulars. The authority held that the services were more in the realm of 'Management, maintenance & repair services' rather than 'Erection, commissioning & installation services.'

Issue 5 - Classification of services as works contract services:
During the appeal process, arguments were made regarding the classification of services as works contract services. The appellant contended that the services involved fell under the scope of works contract services due to the transfer of property during execution. The issue of whether the services provided could be classified as works contract services was not thoroughly discussed before the lower authorities.

In the final judgment, the Tribunal allowed the appeals by remanding the case back to the adjudicating authority for a fresh decision. The Tribunal emphasized the need for a detailed examination of all issues, including the classification of services as works contract services. The lower authorities' orders were set aside, and the appellant was granted the opportunity for a personal hearing to present their case. The Tribunal clarified that it had not expressed any opinion on the merits of the case, leaving all issues open for the adjudicating authority to decide.

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