https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=769423 https://www.taxtmi.com/caselaws?id=769423 Classifcation of services - to be classified under Management, Maintenance or Repair Service, Manpower Recruitment and Supply Agency Service, or Erection, Commissioning or Installation Service? - Extended period of limitation. Classification of service - HELD THAT:- In view of the findings recorded by the Adjudicating Authority and the grounds of appeal taken by the appellant, the Commissioner (Appeals) was required to examine whether the service in question would be covered under the category of "Management, Maintenance or Repair Service' or not. On the contrary, the learned Commissioner erroneously formulated the question whether the work done of labour supply for ARC street light, maintenance under Work Orders dated 3.8.2005 and 13.02.2007 are covered under the ''Management, Maintenance or Repair or 'Manpower, Recruitment & Supply Agency' services. The question formulated and the findings recorded by the Appellate Authority are, therefore, erroneous as the scope of the appeal was limited to classification under ''Management, Maintenance or Repair Service'. The order of the Commissioner (Appeals) set aside to the extent it had classified the services rendered in relation to the Work Orders dated 3.8.2005 and 13.02.2007 within the purview of ''Manpower Recruitment and Supply Agency Service" and remand the issue of classification to be reconsidered. The Commissioner (Appeals) may also examine the issue of taxability of the services rendered with reference to the Work Orders dated 20.08.2009 and 06.09.2010 with reference to the provisions of the Circular - The appellant is entitled to the benefit of cum-tax duty and the matter is remanded to the Commissioner (Appeals) for quantification of duty element granting the benefit of cum-tax duty. Extended period of limitation - HELD THAT:- The law on the issue of invocation of extended period of limitation has been settled that something positive other than mere inaction or failure on the part of the assessee is proved. Conscious or deliberate withholding of information by the assessee is necessary to invoke the extended period of limitation. Without multiplying too many decisions, we would refer to the case of Savira Industries versus Commissioner of Central Excise, Chennai-II [2015 (9) TMI 515 - CESTAT CHENNAI], where it was held held that the assessee was under bonafide belief that mere cutting, welding of steel pipes and sheets did not amount to manufacture as no new commodity emerges and there was no marketability and therefore would attract excise duty. In the circumstances, the demand was held to be hit by limitation - the invocation of the extended period in the present case is not justified in the absence of any strong allegation or positive act, pointing towards fraud, collusion, or any wilful mis-statement or suppression of facts with intent to evade payment of duty. In view thereof extended period is not invokable and no penalty is imposable on the appellant. Conclusion - Appeal remanded to the Commissioner (Appeals) to re-consider the issues as follows:- 1) Whether the services rendered in respect of Work Orders dated 3.8.2005 and 13.02.2007 are classifiable under ""Management, Maintenance or Repair Service', as defined under Section 65(64) of the Act. 2) Whether the services with respect to Work Order dated 20.08.2009 and 06.09.2010 are classifiable under 'Erection, Commissioning or Installation Service' as defined under Section 65(39a) of the Act and whether they are entitled to the benefit under the Circular dated 24.05.2010. 3) Re-quantify the duty element after granting the benefit of cum-tax duty. Appeal allowed by way of remand. Case-Laws Service Tax Wed, 23 Apr 2025 00:00:00 +0530