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TMI Blog2018 (6) TMI 1152X X X X Extracts X X X X X X X X Extracts X X X X ..... ation under the said service. Appeal dismissed - decided against Revenue. - ST/98/2007-DB - 20750/2018 - Dated:- 20-5-2018 - MR. S.S GARG, JUDICIAL MEMBER And MR. DEVENDER SINGH, TECHNICAL MEMBER Dr. J. Harish, Dy. Commissioner(AR) For the Appellant Shri Kuriyan Thomas, Advocate For the Respondent Per: DEVENDER SINGH Revenue has filed this appeal against the impugned order dt. 20/12/2006 passed by CCE, Cochin. 2 Brief facts of the case are that the respondents are registered with the Department for construction services. The Revenue issued a show cause notice after an investigation alleging that the respondents were providing interior decoration services during the period October 2000 to 30.09.2005 demanding service tax of ₹ 82,92,214/- along with interest and proposing penalties under Sections 76 and 77 of the Finance Act, 1994. The matter was adjudicated and the learned Commissioner dropped all the proceedings contemplated in the show-cause notice. Aggrieved from the same, the Revenue has filed appeal against the impugned order. 3. Learned AR for the Revenue invites attention to the definition of Interior Decoration Service and explained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied by the client,' that as part of the project they are also undertaking Air Conditioning, Electrification etc. and are executed through other agencies. It is evident from the above statement relied in the show cause notice that the respondents are executing work under the supervision and guidance of the consultants appointed by the clients. It is also clear that the works are executed by them as per the specifications and design supplied by the clients. 7. We find that a similar issue had come up before this Tribunal in the case of Spandrel vs. CCE, Hyderabad/Kochi (supra), wherein the appellants in that case were undertaking interior works such as pest control, demolition dismantling, masonry work, wall preparation viz. cement, plaster, POP punning, flooring cladding, works like wall paneling, false ceiling, interior furnishing, partitioning of Banks, Financial Institutions and other firms etc. It was noticed by the lower authority that the appellants have provided these services to their clients, mostly software companies, Banks etc., but were not discharging the service tax liability on such services. The lower authorities felt that the services rendered by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. We are not impressed by the said findings or the observations made by the lower authority for the simple reason that the definition of interior decoration service' clearly envisages advice, consultancy and technical assistance and also planning and design and nowhere includes execution of work to be done as would fall under the category of 'interior decorator service'. 8. On the other hand, we find that the amendments which were brought in the Finance Act, 2005 with effect from 16-6-2005 to the services Commercial or Industrial Construction under Section 65(25b) of the Finance Act, read as under :- (25b) commercial or industrial construction service means - (a) construction of a new building or a civil structure or a part thereof; or (b) construction of pipeline or conduit; or (c) completion and finishing services such as glazing, plastering, painting, floor and wall filling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services, in relation to building or civil structure; or (d) repair, alteration, renovation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Jet Airways (India) Ltd. v. Commissioner of Service Tax, Ahmedabad [ 2008 (11) S.T.R. 645 (Tri. Ahmd.)] on a similar issue as to scope of new entries in Service tax net, the coordinate Bench, held as under which we may reproduce: 9. We also agree with the appellant's contention that once the new entry is introduced with effect from the date without disturbing already existing entries, it has to be held that the new entry was not covered by the previous entry. The reference in this regard is made to the Tribunal decision in the case of Board of Control For Cricket in India v. C.S.T., Mumbai - 2007 (7) S.T.R. 384 (Tri. Mumbai). 9. In view of the above reasoning, it is held that the activities of the appellant during relevant period will not be covered under definition of interior decorator services', and we hold that the impugned orders are liable to be set aside and we do so, Th impugned orders are set aside and the appeals are allowed with consequential relief, if any. The above judgment has been followed by this Tribunal in the cases of Kala Sagar (supra) and Divekar Associates (supra). 8. We also find that, in this case, it is clear from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation as the service provider under the category of 'Interior Furnishing Contractors' which included wood work, furniture false ceiling, electrification, counters, painting/polishing along with application for Service Tax Code Number, However, no action is also seen to have been taken on this application either. It is against the background that they have got registration as a service provider under the category of 'Construction Service' on 30.09.05 and started filing the ST-3 Returns as well as payment of service tax. In this background, we find ourselves in complete agreement with the findings of the Ld. Commissioner in para 31 as reproduced below:- 31. Under the circumstances, I accept the contention of the assessee that the activities undertaken by them more appropriately fall under the category of Commercial Construction Services' wherein finishing and completion is one of the activities specified under that category of services for which they have been issued with proper registration certificate by the department It is also a fact that there was correspondence between the assessee and the department regarding registration as an interior decorator ..... X X X X Extracts X X X X X X X X Extracts X X X X
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