2014 (1) TMI 997 - AT - Service Tax

Appellate Tribunal grants stay on Service Tax demand for electrical contractor citing exemption notification.

The Appellate Tribunal CESTAT BANGALORE ruled in favor of the appellant, an electrical contractor, regarding a Service Tax demand and denied Cenvat ... Denial of CENVAT Credit - Works contracts of laying of electrical lines, construction of sub-stations and erection, installation and commissioning of electrical transformers, etc., for Andhra Pradesh State owned power distribution companies - Held that:- Notification No. 45/2010-S.T., dated 20-7-2010 provides for exemption to the service provided relating to distribution and transmission of power from 16-6-2005. Since prima facie the issue appears to be covered by the exemption notification, we consider that there is no need for pre-deposit in this case - Stay granted. The Appellate Tribunal CESTAT BANGALORE ruled in favor of the appellant, an electrical contractor, regarding a Service Tax demand of Rs. 47,26,435/- with penalties. They also denied Cenvat credit of over Rs. 19 lakhs. The tribunal found that the issue was covered by Notification No. 45/2010-S.T., providing exemption for services related to power distribution and transmission from 16-6-2005. Pre-deposit requirement was waived, and stay against recovery was granted during the appeal.