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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
MS. JYOTI BALASUNDARAM, VICE-PRESIDENT, Dr. Chittaranjan Satapathy
Lloyd Insulations (India) Ltd. -Appellant
Versus
Commissioner of Service Tax, Chennai -Respondent
STAY ORDER NO. 441/2010 APPLICATION NO. ST/S/194/2010 APPEAL NO. ST/341/2010
Decided On : 20-09-2010
R. Parthasarathy,Ms. Indira Sisupal
Ms. Jyoti Balasundaram, Vice-President. ‑ We have heard both sides on the application for waiver of pre-deposit of differential service tax amount of Rs. 12,58,230 and penalty of equal amount. The demand confirmation is as a result of denial of benefit of Notification No. 15/2004-S.T., dated 10-6-2004 providing for payment of tax @ 33 per cent of the contract value for the reason that the assessees (who are engaged in construction services and commissioning and installation services) rendered services of thermal installations, water proofing work, false ceiling systems and acoustic insulations which were nothing but "finishing and completion services" which were excluded from the benefit of the notification abovementioned.
2. We find that the assessees have made out a strong prima facie case for waiver as the contracts entered into with their customers involved use of materials in addition to service, as seen from the various work orders received from the customers and, therefore, even if the services rendered by the assessees were in the nature of "finishing and completion services", prima facie, service tax cannot be levied on materials (goods). We, therefore, waive pre-deposit of the amounts in question and stay recovery thereof pending the appeal.
