Tribunal rules in favor of appellant on service tax demands for commissioning, installation, and renting services

The Tribunal ruled in favor of the appellant in a case concerning service tax demands for commissioning or installation service and renting of immovable property service. The appellant was granted exemptions under Notification No.45/2010-ST for services related to erection, commissioning, or installation, and the demand for renting of immovable property service was deemed unsustainable as it pertained to rent received for vacant land not previously taxable. The Tribunal waived further pre-deposit requirements due to the appellant's deposit and granted a stay against recovery during the appeal process.

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Issues:
1. Service tax demand for commissioning or installation service.
2. Service tax demand for renting of immovable property service.

Analysis:
1. The appellant, engaged in executing contracts related to various works, faced a service tax demand of Rs.60,68,455 for commissioning or installation service and Rs.4,91,145 for renting of immovable property service for the period 2005-06 to 2009-10. The appellant claimed that services related to transmission of electricity are exempt under Notification No.45/2010-ST dated 20.7.2010, providing retrospective exemption for such services. The Tribunal found that prima facie the notification applied to the appellant, granting exemption for services related to erection, commissioning, or installation.

2. Regarding the demand for renting of immovable property service, the appellant argued that the demand was based on rent received for vacant land not previously liable to tax before 2010. The Tribunal acknowledged the appellant's claim as sustainable. Additionally, the appellant had already made a deposit of Rs.21,70,930, which was deemed sufficient for the purpose of pre-deposit. Consequently, the Tribunal waived the requirement of further pre-deposit for the balance dues and granted a stay against recovery during the appeal process.

This judgment highlights the Tribunal's consideration of the appellant's arguments regarding service tax demands for commissioning or installation service and renting of immovable property service. The decision was in favor of the appellant, granting exemptions based on applicable notifications and the pre-deposit made by the appellant.

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