9911796707
TMI Blog2024 (6) TMI 1332X X X X Extracts X X X X X X X X Extracts X X X X ..... rporation - Since the demand of service tax has been made in these appeals under service tax category of Erection, Commissioning and Installation Service however, in the similar matter of M/s. Shree Hindustan Fabricators, this Tribunal has held that the correct classification of such services should be under Commercial and Industrial Construction service as per Section 65 (25b) of the Finance Act, 1994. The impugned orders-in-appeal are without any merit - appeal allowed. - MR. SOMESH ARORA, MEMBER (JUDICIAL) AND MR. C.L. MAHAR, MEMBER (TECHNICAL) Shri Jigar Shah Shri Amber Kumarawat, Advocates for the Appellant Shri Himanshu P Shrimali, Superintendent (AR), (AR) for the Respondent ORDER All the appeals details of which are being given hereunder are taken up together as all these appeals emanated from common investigations initiated by the investigating agency of the department. The brief facts of the matter are that the Director General of Central Excise Intelligence, Vapi have searched the premises of M/s. Shree Hindustan Fabricators, Surat suspecting that M/s. Shree Hindustan Fabricators and his subcontractors are providing services of laying of pipelines for water supply and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... category of ECIS. It has been argued that since the demand has been made under ECIS only, no demand under any other classification such as Commercial or Industrial Works Construction Service or Works Contract Service can be sustained. For this argument they have relied on the decision of REAL VALUE PROMOTERS PVT. LTD.(supra) and on the decision in the case of CONCEPT MOTORS PVT. LTD. (supra). In the case of CONCEPT MOTORS PVT. LTD. (supra) tribunal has observed as follows : As regard the demand of service tax on referral fees received by the appellant from HDFC Chubb insurance company, we find that the service is in connection with business of insurance of HDFC Chubb. In terms of Sub Section 65 of Finance Act, 1994, the service provided by the appellant falls under definition of Insurance Auxiliary Services whereas the Revenue has raised the demand under wrong head. On this ground the demand of service tax under Business Auxiliary Services does not sustain. As per our above discussion, the impugned order is set aside and appeal is allowed. 5.1 The next argument of the appellant is that the service provided by them is not covered under ECIS as held by tribunal in case of INDIAN HUM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt after erection which would refer to putting up civil structures. Commissioning of a plant would mean operationalising an installed plant/equipment/machinery. Whereas erection became part of the entry only from 10-9-04, from 16-6-05 onwards meaning of erection, commissioning or installation *Section 65(39a)+ was enlarged to include installation of various devices and equipments. An entry plumbing, drain laying, or other installation for transport of fluids was introduced under sub-section (ii)(b). The impugned order found that the service involved was specifically covered from 16-6-05 under the same head by the entry plumbing, drain laying, or other installation for transport of fluids . We are inclined to agree with the appellants that this entry covers such facility provided in a building as it appears in the company of air-conditioning system, lifts, electronic devices including wiring etc. which are installed in a building. The Commissioner found that plant represented a fixed investment for carrying out certain institutional activity for business . The ld. Consultant for the department has tried to defend the interpretation of the Commissioner of the expression plant. The Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge projects, the works are not exigible to service tax under CICS (prior to 1-6-2007), since these are not primarily for commercial or industrial purposes and are excluded from the scope of the taxable services qua the exclusionary clause definition of CICS, in Section 65(25b) of the Act. 11 . As rightly pointed out by the Tribunal, the assessee was entrusted with the task of laying a long distance pipeline to enable the Tamil Nadu Water Supply and Drainage Board to supply water. It was an activity in public interest, to take care of the civic amenities liable to be provided by the State. Therefore, the Tribunal was right in holding in favour of the assessee. Hence, the question of law is answered in favour of the assessee. 5.3 In view of categorical findings of Larger Bench as well as Hon ble High Court of Madras cited above we respectfully hold that the activities under taken by the appellant cannot be classified under ECIS. 5.4 . The other arguments of revenue regarding classification of services under Works Contract Service or Commercial or Industrial Construction Service become irrelevant as no demand under the said head has been raised by revenue. No charge for classification ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
