Appellant wins Service Tax dispute, allowed deductions, directed to pre-deposit reduced amount.

The Tribunal ruled in favor of the appellant, stating they were not liable to pay Service Tax on pre-design, drawing, and technical assistance activities. The Tribunal allowed deductions for excavation, cable laying, and wiring activities, directing the appellant to pre-deposit a reduced amount of Rs. 25,000 within two months, with the balance of Service Tax waived and recovery stayed pending appeal disposal. Failure to comply would lead to dismissal of the appeal.

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Issues:
1. Service Tax on pre-design, drawing, technical assistance activities.
2. Service Tax on excavation of cable trench, laying cables, wiring activities.

Analysis:
1. The first issue pertains to the Service Tax on pre-design, drawing, and technical assistance activities rendered by the appellant as an electrical contractor. The appellant argued that these activities were part of erection, commissioning, and installation work, not design and technical assistance. They contended that the Service Tax should be charged from expert engineers who performed design work. The Tribunal acknowledged the appellant's argument, stating that the engineering designs and technical assistance were provided by separate electrical engineers, making the appellant not liable to pay Service Tax on these grounds.

2. The second issue involves the Service Tax on activities related to excavation of cable trench, laying cables, and wiring. The appellant claimed that certain deductions were applicable to the amounts received for these activities. The Tribunal noted that the Commissioner did not address the appellant's pleas for deductions in the order, making it not a speaking order. The Tribunal found the appellant's grounds for deductions sustainable and directed them to pre-deposit a reduced amount of Rs. 25,000 within two months, with the balance of Service Tax waived and recovery stayed pending appeal disposal. Failure to comply would result in dismissal of the appeal.

In conclusion, the Tribunal ruled in favor of the appellant on both issues, stating that they were not liable to pay Service Tax on the pre-design, drawing, and technical assistance activities and allowing deductions for the excavation and wiring activities. The Tribunal emphasized the importance of addressing the appellant's pleas for deductions and directed them to pre-deposit a reduced amount while staying the recovery of the balance pending appeal disposal.

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