9911796707
TMI Blog2023 (9) TMI 1138X X X X Extracts X X X X X X X X Extracts X X X X ..... llant. The appellant is not liable to pay service tax on their activity - impugned order set aside - appeal allowed. - HON BLE SHRI ASHOK JINDAL , MEMBER ( JUDICIAL ) And HON BLE SHRI K. ANPAZHAKAN , MEMBER ( TECHNICAL ) NONE for the Appellant (s) Shri S. S. Chattopadhyay , Authorized Representative for the Revenue ORDER Per : ASHOK JINDAL : The appellant is in appeal against the impugned order. 2. The appellant is registered with as small scale industry unit. The appellant was awarded a contract from ONGC for hiring 4 numbers of Steam Generating Units for a period of six months. As per the agreement within the mobilization period, the appellant installed/erected and commissioned the Steam Generting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nerating Unit having capacity to generate Superheated Steam at 180 degree Celsius at minimum discharge rate of 1000 Kg/hr up to an operating pressure of 10 Kg/Cm2 (5) Operating hours may be averaging to 8 hours per day and occasionally may go up to 12 hrs per day. The vailability of the Steam Generating Unit shall be ensured throughout the contract period. (6) The unit will be utilized normally during day light time from 0600 hrs to 1800 hrs. During emergency unit may have to be operated during night time also. No extra charge will be paid on this account. (7) The Steam Generating Unit will normally deployed in the fields of ONGCL, Eastern Region, Assam. CREW PERSONNEL The bidder should provide experienced an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring this period the appellant entered into contract agreement with M/s. Oil and Natural Gas Corporation Ltd. (ONGCL) for providing cranes on hire basis. The cranes were made available alongwith operators and operated as per their requirement of ONGC. For such service they were to be paid consideration in the form of monthly operational charges as well as empty run charges. Revenue was of the opinion that the services provided to ONGC were of the nature covered by the definition of Business Auxiliary Service falling under Section 65(19) of the Finance Act, 1994 which was introduced w.e.f. 01.07.2003. For demand of service tax under the above category, show cause notice dated 11.02.2008 was issued which was adjudicated by passing the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mand in the present proceedings is for the prior period, we find no justification for the levy of the service tax under the category of Business Auxiliary Service. 5. As per the agreement the appellant has to provide various services by utilizing Steam Generating Unit but held by this Tribunal, the said activities does not fall under business auxiliary service prior to 26.05.2008, therefore, demand of service tax under the category of business auxiliary service is not sustainable against the appellant. 6. In that circumstances, we hold that the appellant is not liable to pay service tax on their activity. Accordingly, the impugned order is set aside and appeal is allowed with consequential relief, if any. ( Operative part of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
