Tribunal reclassifies services of Russell Interiors Private Limited to 'works contract'

The Tribunal allowed the appeal filed by Russell Interiors Private Limited, setting aside the order confirming the demand of service tax under 'interior decorator' service for the period 2011-12. The Tribunal held that the services provided by the appellant, including partition work, civil works, woodwork, flooring, etc., should be classified as 'works contract' services based on a previous Tribunal decision and the nature of services provided. The Tribunal found that the extended period of limitation invoked by the department was unjustified, as there was no evidence of suppression or misrepresentation by the appellant.

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Issues:
Classification of services under 'works contract' service or 'interior decorator' service.

Analysis:
The appeal was filed by Russell Interiors Private Limited to challenge the order confirming the demand of service tax with penalty and interest for the period 2011-12. The issue revolved around whether the services provided by the appellant, including partition work, civil works, woodwork, flooring, electrical work, plumbing, etc., in relation to constructed buildings/offices, should be classified under 'works contract' service or 'interior decorator' service. The impugned order had classified the services under 'interior decorator' service.

The appellant relied on a previous Tribunal decision that set aside a similar order confirming the services under 'interior decorator' service. The Tribunal in the previous case found that the appellant's services did not fall under 'interior decorator' service as they were not related to design or technical assistance but were in the nature of work contract services. The Tribunal also held that the extended period of limitation invoked by the department was unjustified as there was no evidence of suppression or misrepresentation by the appellant.

Based on the previous Tribunal decision and the nature of services provided by the appellant, the current Tribunal set aside the order confirming the demand under 'interior decorator' service. The Tribunal held that the appellant's services were rightly classified as work contract services and that the demand within the normal period of limitation was not sustainable. Therefore, the appeal was allowed, and the order confirming the demand under 'interior decorator' service was set aside.

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