Archana Wadhwa, Member (J)
1. Service Tax to the tune of Rs. 8,13,41,574/- stands confirmed against the appellants, who are engaged in the manufacture of textile machineries, on the ground that they are also providing the service of installation and erection at the customers premises. During the course of adjudication, the appellant took a categorical stand that they entered into contract with their customer for supply, installation and erection of the machineries at a lump sum amount and while paying excise duty on the same, they have not sought deduction of the amount of installation and erection charges etc. In other words, excise duty stands paid on the entire contracted amount. This fact stands accepted by the adjudicating authority who proceeds to confirm the demand of service tax on the entire contracted amount by observing that the appellants have not sought to give bifurcation of the installation and erection from other manufacturing cost.
2. Apart from the fact above, the appellant also contended before the adjudicating authority that they have not done themselves this undertaking of installation and erection and have sub-contract work to other independent agencies, who are, in any case, paying service tax on the said installed goods. This fact also stands accepted by the adjudicating authority.
3. In view of the above, we do not find any justification for confirmation of service tax against the appellant when the excise duty was being paid on the entire amount. In fact, if the appellant would have chosen to claim deduction of installation and erection charges from the assessable value for the purpose of payment of central excise duty and would have chosen to pay service tax on the said amount, the actual amount of duly paid by them would have been lower by an amount of Rs. 3.60 lakhs (approx.). As such, we find that the appellant has been able to make out a prima facie case in their favour so as to allow the stay petition unconditionally. Ordered accordingly.
(Dictated and pronounced in the open Court)
Aalidhra Texspin Engineers v. Commissioner Of C. Ex. And Cus
Aalidhra Texspin Engineers v. Commissioner Of C. Ex. And Cus
(Customs, Excise & Service Tax Appellate Tribunal, West Zonal Bench At Ahmedabad)
| 09-05-2008
Advocate List
Bench
- Archana Wadhwa (J)
- B.S.V. Murthy (T), Members
Eq Citations
- 2009 [13] S.T.R. 404 (Tri. - Ahmd.)
- LQ/CESTAT/2008/1000
Head Note
C. Excise — Central Excise Act, 1944 — Ss. 3(1)(a) and 3(1)(b) — Excise duty paid on entire contracted amount — Sub-contracting installation and erection work to independent agencies — Service tax on entire contracted amount confirmed — Stay granted — On facts, held, no justification for confirmation of service tax against appellant when excise duty was being paid on entire amount — If appellant would have chosen to claim deduction of installation and erection charges from assessable value for purpose of payment of excise duty and would have chosen to pay service tax on said amount, actual amount of duty paid by them would have been lower by Rs. 3.60 lakhs (approx.) — Appellant able to make out a prima facie case in their favour so as to allow stay petition unconditionally — Taxation Law — Stay — Grant of stay — Prima facie case — Existence of (Paras 1 to 3)
