Tribunal grants waiver on service tax liabilities for appellant providing services to electricity supply companies.

The Tribunal granted the appellant's request for waiver of pre-deposit of the balance amounts involved in the service tax liabilities on erection & commissioning services and rent-a-cab services. The Tribunal found that the services provided by the appellant to electricity supply companies may be covered by the exemption notification related to transmission and distribution of electricity. Additionally, the Tribunal acknowledged the partial payment made by the appellant towards the rent-a-cab services liability and allowed the waiver application for the remaining balance amounts, staying the recovery until the appeal's disposal.

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Issues involved:
Service tax liability on erection & commissioning services and rent-a-cab services.

Analysis:

Service Tax Liability on Erection & Commissioning Services:
The issue in this case pertains to the service tax liability on the erection & commissioning services provided by the appellant to Gulbarga Development Authority and rent-a-cab services to electricity supply companies like HESCOM. The appellant claimed that their activity is covered by Notification No. 45/2010-S.T., which excludes taxable services related to the transmission and distribution of electricity. The appellant argued that the exemption under this notification should apply to their services. On the other hand, the Departmental Representative contended that the notification does not cover the services provided by the appellant and referred to a decision by the Larger Bench of the Tribunal to support their argument. However, upon careful consideration, the Tribunal found that the notification indeed granted exemption to all taxable services related to transmission and distribution of electricity until specific dates. The Tribunal observed that the services provided by the appellant to HESCOM, involved in the transmission and distribution of electricity, may be covered by the notification. Therefore, the Tribunal concluded that the appellant made a prima facie case for waiver of pre-deposit towards the service tax liability on the erection & commissioning services.

Service Tax Liability on Rent-a-Cab Services:
Regarding the service tax liability on rent-a-cab services, the appellant had already deposited a portion of the liability. The appellant claimed that out of the total liability of Rs. 50,000, they had already paid Rs. 45,000. The Tribunal acknowledged this payment and noted that the appellant had complied with a significant portion of the liability. Consequently, the Tribunal allowed the application for waiver of pre-deposit of the remaining balance amounts involved in the case and stayed the recovery of the same until the appeal was disposed of.

In conclusion, the Tribunal granted the appellant's request for waiver of pre-deposit of the balance amounts involved in the service tax liabilities on the erection & commissioning services and rent-a-cab services, based on the interpretation of the relevant notification and the appellant's compliance with the partial payment of the liabilities.

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