9911796707
TMI Blog2014 (11) TMI 582X X X X Extracts X X X X X X X X Extracts X X X X ..... : B.S.V. MURTHY; Proceedings were initiated against the appellant by issue of show-cause notice dated 21.10.2011 on the ground that appellant was liable to pay service tax of Rs. 5,50,66,277/- on the amount paid to the foreign supplier for Freeze Drying Plant under Erection, Commissioning or Installation services. Besides demanding interest, penalties also have been imposed under various Sections ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 Euros) and the actual amount paid (75,39,550 Euros) indicates the consideration for the services. iv. Abatement under Notification No. 1/2006 ST dated 01.03.2006 not available as being an EOU, the assessee is eligible to avail CENVAT credit on capital goods and the appellant did not produce evidence to show that they have not availed credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the entire contract, including service provided, if any, would be a Works Contract, which came into levy only w.e.f. 01.06.2007. Reliance is placed on the decision of Larsen and Tubro Ltd. V. State of Karnataka, [2013-TIOL-46-SC-CT-LB] (now referred to 5 judge bench). d) No service was rendered by the Foreign Supplier of the Freeze Drying Plant even though the contract indicates that the supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he services provided. h) It abatement under Notification No. 1/2006-ST dated 01.03.2006 is availed, the value of the services would be zero. i) The entire value of 75,39,550 Euros is towards the supply of the Freeze Drying Plant and does not involve provision of any service. B. Entire issue is revenue neutral as the assessee is eligible to the credit of the tax, if paid and use it for payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich came into levy only w.e.f. 01.06.2007 and issue has been referred to 5 Member Bench and therefore on that ground also when the demand is for extended period request for waiver can be considered favourably. Accordingly we consider that in this case the requirement of pre-deposit has to be waived and stay has to be granted for 180 days and we do so. (Operative portion of the order has been pron ..... X X X X Extracts X X X X X X X X Extracts X X X X
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