Tribunal dismisses Revenue's appeal on service tax recovery, upholds Assessee's appeal on service classification.

The Tribunal dismissed Revenue's appeal challenging the recovery of service tax, upholding the dropping of the demand due to lack of discrepancies in document scrutiny. Additionally, the Tribunal allowed the Assessee's appeal, ruling that the service provided did not fall under "Supply of Tangible Goods Service" as control and possession remained with another party. The denial of cenvat benefit demand was upheld based on proper documentation. Consequently, the Tribunal dismissed Revenue's appeal and allowed the Assessee's appeal, concluding the case.

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Issues:
1. Revenue challenging impugned order for recovery of service tax.
2. Assessee disputing taxable service under "Supply of Tangible Goods Service".
3. Allegation of denial of cenvat benefit and recovery.

Analysis:
1. The Revenue contested the impugned order, arguing that the Adjudicating Authority did not scrutinize documents properly, making the recovery proposal of Rs. 65,86,87,931 unsustainable. However, the Tribunal found that the Authority examined documents and dropped the demand based on authentic records and a Chartered Accountant's Certificate. The Tribunal concluded that the Revenue failed to point out discrepancies, upholding the dropping of the demand.

2. Regarding the Assessee's appeal on taxable service, the Tribunal analyzed the contract with M/s BHEL. As per statutory requirements, since effective control and possession of the equipment remained with M/s BHEL, the service did not fall under "Supply of Tangible Goods Service." The Tribunal cited previous cases where non-transfer of right to use or possession of goods exempted transactions from service tax, leading to the allowance of the Assessee's appeal.

3. The Adjudicating Authority found that the Assessee availed cenvat credit after paying for taxable services. This observation was supported by invoices and a Chartered Accountant's Certificate. The Tribunal upheld this finding, concluding that the denial of cenvat benefit demand of Rs. 27,62,90,512 was in line with statutory provisions.

In conclusion, the Tribunal dismissed the Revenue's appeal and allowed the Assessee's appeal, disposing of the case accordingly.

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