2014 (2) TMI 339 - AT - Service Tax

Tribunal upholds classification of appellant's activities under Finance Act, deposit required, compliance leads to stay

The Tribunal upheld the classification of the appellant's activities under Commercial and Industrial Construction Services as per the Finance Act. The ... Stay application - Demand of service tax - Commercial and Industrial Construction - supply of furniture items - Held that:- prima-facie, it appears that the activities done in the present case is that certain furniture items are fixed to the concrete structure and appears to be covered under the ‘Commercial and Industrial Construction Services’. Appellant has thus not made out a case for complete waiver of the pre-deposit of amounts involved and are required to put to some conditions - Following decision of Spandrel Versus Commissioner of Central Excise, Hyderabad [2010 (5) TMI 299 - CESTAT, BANGALORE] - Conditional stay granted. Issues:Interpretation of Commercial and Industrial Construction Services under Section 65(25b) of the Finance Act.Analysis:The case involved an appeal against an order regarding the classification of services provided by the appellant under Commercial and Industrial Construction Services. The appellant argued that their activities involved only the supply of furniture items fixed to walls and should not be considered as completion or finishing of construction. On the other hand, the respondent cited a judgment where similar activities were classified under Commercial and Industrial Construction Services. The Tribunal considered the definition of Commercial and Industrial Construction Services under Section 65(25b) of the Finance Act, which includes activities like glazing, plastering, painting, and fixing furniture in relation to buildings or civil structures. The Tribunal found that the activities in the present case, involving fixing furniture items to concrete structures, fell under the definition of Commercial and Industrial Construction Services.The Tribunal noted that the appellant failed to establish a case for a complete waiver of the pre-deposit amount and directed them to deposit a specified amount within a given timeframe. The appellant was required to comply with the deposit condition and report to the Deputy Registrar accordingly. Upon compliance, a stay was granted on the remaining part of the order in appeal. The Tribunal's decision was based on the interpretation of the activities carried out by the appellant in relation to the definition of Commercial and Industrial Construction Services as per the Finance Act.In conclusion, the Tribunal upheld the classification of the appellant's activities under Commercial and Industrial Construction Services based on the definition provided in the Finance Act. The decision emphasized the importance of complying with deposit requirements and set conditions for the appellant to follow, ensuring a stay on the operation of the remaining part of the order in appeal.