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TMI Blog2018 (6) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 - appeal allowed - decided in favor of appellant. - ST/53/2010, 123-124/2010 - Final Order No. 40484-40489/2018 - Dated:- 21-2-2018 - Ms. Sulekha Beevi C.S. Member (Judicial) and Shri Madhu Mohan Damodhar, Member (Technical) Shri Raghavan Ramabhadran, Advocate, Ms. Sweta Giridhar, Advocate For the Appellant Shri Arul C.Durairaj, Superintendent (AR) For the Respondent ORDER The issue involved in these appeals being same, they were heard together are disposed by this common order. The parties are referred to as assessee and Revenue for the sake of convenience. 1.1 Brief facts are that assessee, M/s. Siemens Ltd, are engaged in manufacture or Electronic Safety System and Accessories and are registered with Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by them, under the category Erection, Commissioning and Installation' services. After due process of law, the Commissioner. observed tnat the assessee has discharged central excise duty for the goods manufactured by them and taking into account this aspect ordered to adjust the excise, duty paid by assessee towards the service tax demand and held that assessee would be liable to pay differential service tax for the period 8.12.2008 to 28.2.2009 during which the rate of service tax was higher than the central excise duty. Aggrieved the assessee has fifed appeal No.ST/53/2010 and ST/123-124/2010. The department has filed appeal ST/65-67/2010 contending that Commissioner ought not to have ordered for adjustment of the demand of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was payable immediately on such supply. The Supply of all ancillaries like ducts, etc., and installation in the building were subsequent to supply, [t was observed that the wires, ducts and other ancillaries were not parts of the air-conditioning units, but were necessary for installation and the work, of installation of the air-conditioning units were incidental to the sale of the air-conditioner. The Hon'ble High Court found that the above transaction did not amount to a composite and indivisible works contract as service involved in fixing up the air-conditioner were incidental to the sale of air-conditioners to the customer, In the present transaction on which service tax has been demanded is identical to the above transaction on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r case that when the goods are manufactured and thereafter installed in the customers' premises, the predominant activity is manufacture and installation is only incidental to the activity of manufacture, The department has confirmed the demand of service tax on the whole composite amount (value of goods + installation charges) raised the invoices, This cannot be as It ignores the manufacturing activity, a taxable event, completely, The appellant has discharged central excise duty on the whole amount. This being so, the differential demand of service tax confirmed on the basis that for a short period of three months i.e., from 8.12.2008 to 28.212009, the rate of service tax being higher than excise duty appears to be totally unsound ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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