TaxTMI 
TaxTMI 
2015 (8) TMI 640
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....stallation and Commissioning Service" (ECIS) in respect of HVAC systems (air conditioning systems) installed by the appellant in the premises of various customers. The Commissioner (Appeals) upheld the said demand, but set aside the penalty on the ground that there was enough scope for a doubt regarding levy of service tax itself with reference to ECIS based on Work Order involving supply of goods as well as service and therefore, he allowed the benefit under Section 80 of the Finance Act, 1994. 2. The appellant/assessee has contended as under:- (i) The service was rendered under works contract service which became taxable only with effect from 01.06.2007 and therefore during the said period, the service tax was not leviable under ECIS. ....
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....service came into existence only with effect from 01.06.2007 and therefore the service rendered under works contract was not liable to service tax prior to 01.06-2007, the said issue has since been decided by the Five Member Larger Bench of CESTAT in the case of Larsen & Toubro Ltd. (supra). In that case, CESTAT held that the works contracts were vivisectable for charging service tax under appropriate taxable service rendered under such composite (work contract). However, the very fact that the Larger Bench had to be set up to decide the issue that the service rendered under works contract was leviable to service tax prior to 01.06.2007 if the service inherent in the works contract was a taxable service is sufficient to sustain the impugned....
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....2005:- (39a) "erection, commissioning or installation" means any service provided by a commissioning and installation agency, in relation to:- (i) Erection, commissioning or installation of plant, [machinery, equipment or structures, whether prefabricated or otherwise]; or (ii) Installation of- (a) Electrical and electronic devices, including wirings or fittings therefor; or (b) Plumbing, drain laying or other installations for transport of fluids; or (c) Heating, ventilation or air-conditioning including related pipe work, ductwork and sheet metal work; or (d) Thermal insulation, sound insulation, fire proofing or water proofing; or (e) Lift and escalator, fire escape staircases or travelators: or (f) Such other similar services;]....
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....lated pipe work, duct work and sheet metal work. From this analysis, it unequivocally follows that installation of air-conditioning is not covered under the scope of clause (i) of Section 65 (39a) as it exists from 16.06.2005 and if it is not covered under the said clause (i) then it could not have been covered under definition of ECIS under Section 65 (39a) ibid as it existed prior to 16.06.2005 because that definition (as stated earlier) was less wide in scope than the scope of coverage under clause (i) of Section 65 (39a) with effect from 16.06.2005. As regards Revenue's contention that only installation of air-conditioning is covered under clause (ii) of Section 65 (39a) and therefore commissioning of air-conditioning would be cover....
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...., and sheet metal work, thermal insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire escape staircases and travelators [refer clause (39a) of section 65]." Thus, the later circular makes it absolutely clear that the scope of ECIS was expanded by including specified installation services such as installation of air-conditioning including related pipe work, duct work and metal sheet work. Although Board circular is not binding on the quasi-judicial authorities, it is clear that the later circular of the Board dated 27.07.2005 in a way revised the opinion expressed in its earlier circular dated 21.08.2003. A careful perusal of definition of ECIS also reveals that sub-clause (i) is separated from sub-clause (....