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TMI Blog2020 (1) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... icles meant for use by the police and provide protection to the troops sitting inside the vehicles against bullets/hand grenades - similar issue decided in the case of M/S. JCBL LIMITED, M/S. TATA MOTORS LIMITED, M/S. JCL LIMITED VERSUS CCE ST, CHANDIGARH-II [ 2019 (4) TMI 176 - CESTAT CHANDIGARH] where it was held that the main purpose is to ensure the safety of the occupants inside the vehicle for which, the vehicle is made bulletproof. Therefore, the bulletproof SPVs deserve to be classified under chapter heading 8705 - As the goods are classifiable under chapter heading 8705 90 00. Therefore, the appellants are entitled for the benefit under Serial No.50 of exemption N/N. 6/03-CE dt.1.3.2003 - thus, the appellant is manufacturing spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice tax is payable by the appellant. Penalty - HELD THAT:- The whole of the demand against the appellant is not sustainable and the same is set aside - Consequently, no penalty is imposable on the appellant. Appeal allowed - decided in favor of appellant. - ST/53005/2014 - FINAL ORDER NO. 60696 /2019 - Dated:- 21-5-2019 - Mr. Ashok Jindal, Member (Judicial) and Mr.Bijay Kumar, Member (Technical) Present for the Appellant: Shri B.L.Narsimhan, Advocate Present for the Respondent: Shri M.S.Dhindsa, AR ORDER The appellant is in appeal against the impugned order wherein the demands have been confirmed on following grounds: (a) Classification of fabrication arm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ass in the windows and windscreen of car and bullet proof steel panelling on the insides of the car. The appellant treated the same as works contract and paid VAT thereon. A show cause notice was issued to the appellant alleging that impugned vehicles are classifiable under Chapter heading 8710, therefore, the exemption is not available. 3. It was further alleged that bullet proofing activity is taxable under the category of Business Auxiliary Service, therefore, they are liable to pay service tax. Service tax was also sought to be demanded on renting of immovable property service alleging that the service has not been paid by the appellant. The demand on account of denial of exemption was confirmed. Service tax was also demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not correct and extended period of limitation is not invokable. Consequently, the penalty is not imposable. 6. On the other hand, Ld. AR supported the impugned order. 7. Heard the parties and considered the submissions. 8. On careful consideration of the submissions made by both the sides, we find that the appellant is fabricating the motor vehicles which are having been used for protection against AK-47, splinter proof protection, bullet proof glass, retaliation through holes made on the side, rear and on top of the vehicle. These features made them special purpose light armoured vehicles meant for use by the police and provide protection to the troops sitting inside the vehicles against bullets/hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otection to the troops sitting inside the vehicles, against bullet/hand grenades. It also had provision for holes on the roof and the sides, through which the troops inside the vehicle can retaliate. Thus, primary purpose of the said vehicle was patrolling, surveillance and security of the forces inside the vehicle while being stationed at the battlefield. Therefore, the SPVs are designed and manufactured for special purpose and use . These are not principally designed for the transport of passengers or goods and hence, are not excluded from the purview of heading 8705. The main purpose is to ensure the safety of the occupants inside the vehicle for which, the vehicle is made bulletproof. Therefore, the bulletproof SPVs deserve to be cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant has correctly classified the activity under works contract service. No service tax is payable under the business auxiliary service. Therefore, the demand is also set aside under the category of business auxiliary service. 12. Now we come to the third issue i.e. renting of immovable property service, we find that during the period from March and August, 2008, the service tax was payable on receipt basis. Admittedly, from the record, it is clear that the appellant has not received any amount on account of renting of immovable property, therefore, no service tax is payable by the appellant. 13. In view of the above analysis, the whole of the demand against the appellant is not sustainable and the same is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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