Appellate tribunal overturns tax demand, cites failure to consider exemption for electricity services. Remanded for fresh adjudication.

The appellate tribunal set aside the Commissioner's order confirming a service tax demand against the appellant for services provided to H.P. Electricity Board. The tribunal found the Commissioner's decision to be ex parte and failing to consider a specific Central Government notification exempting service tax on activities related to electricity distribution until a specified date. The matter was remanded back to the Commissioner for fresh adjudication, directing a reevaluation of the appellant's tax liability in light of the notification. The appeal and stay application were disposed of accordingly.

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Issues:
- Taxability of services provided by the appellant under Section 65(105)(zzd)
- Validity of show cause notice for recovery of service tax
- Adjudication by the Commissioner and penalties imposed
- Consideration of Central Government notification no.45/2010-ST
- Ex parte order by the Commissioner

Analysis:
The judgment revolves around the taxability of services provided by the appellant, focusing on whether the services fall under the definition of 'erection, installation & commissioning service' as per Section 65(105)(zzd). The appellant had contracts with H.P. Electricity Board for setting up transformer stations, leading to a dispute regarding the applicability of service tax. A show cause notice was issued for recovery of allegedly non-paid service tax along with interest and penalties under various sections of the Finance Act, 1994.

The Commissioner of Central Excise, Chandigarh-II adjudicated the show cause notice and confirmed a substantial service tax demand against the appellant, imposing penalties as well. The appellant challenged this order through an appeal, raising concerns about the lack of consideration given to a specific notification issued by the Central Government. The appellant argued that the notification exempted certain taxable services related to transmission and distribution of electricity until a specified date, which should have been taken into account by the Commissioner.

The appellate tribunal, after hearing both sides, noted that the Commissioner's order was ex parte and failed to consider the implications of the Central Government notification no.45/2010-ST. The notification exempted service tax on specific activities related to the distribution of electricity until a certain date due to prevailing practices. As the Commissioner did not assess the appellant's tax liability in light of this notification, the tribunal set aside the order and remanded the matter back to the Commissioner for fresh adjudication after hearing the appellant. The appeal and stay application were disposed of accordingly.

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