2016 (2) TMI 445

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....e duty on the same. In addition to manufacturing of transformers, appellant also undertakes maintenance and repair as well as commissioning and installation of the said transformers on which he appropriately discharges the service tax liability. In addition to such activities, appellant undertakes repair of transformers of various States Electricity Boards by quoting on tender for such activity; the transformers so received from the Electricity Boards are not manufactured by the appellant but manufactured by some other manufacturers. During the course of EA-2000 audit, the auditing team came to a conclusion that during the period 01.07.2003 to 31.03.2006, repairing activity undertaken by the appellant of transformers manufactured by other m....

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....and is hit by limitation as the show-cause notice was received on 28.05.2007 demanding duty paid in September 2006. To support her argument on limitation she would take us through various documents like correspondence entered by them with the department and D-3 intimation to the authorities when they received the transformers for repairs. It is her submission that the department was in the knowledge of the activity undertaken by them hence the service tax liability is incorrectly fastened on them. It is her submission that on merits prior to 16.06.2005 the issue is covered by the judgement of the Tribunal in the case of Basant Enterprise - 2011 (24) STR 252 (T). She would also rely upon the Board's Circular B1/6/2005-TRU dated 27.7.2005....

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....nance or repair' services undertaken by the appellant in situation wherein they undertake repairs of electricity transformers manufactured by other manufacturers and installed by various State Electricity Boards, under repairing contracts. It is also seen that these contracts were obtained by the appellant from tender and quotation process. 6.1 There is no dispute as to the fact that the appellant is undertaking the repairs or maintenance of the transformer received by them from various Electricity Boards and industrial houses and also that they are using various materials for such repairs undertaken by them. 6.2 We have to consider the definition of "maintenance or repair" services for the period in question which falls into two ....

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....ing the transformers is only a "work order" and contract for repair and it is not a "maintenance contract". We find that the learned Counsel was correct in relying upon the judgement of this Tribunal in the case of Basant Enterprises (supra). The issue and the facts of Basant Enterprise (supra) is the same and the ratio of the judgement is as under:- "8. After appreciating the submissions, we find that the issue is no more res integra and stands covered by the precedent decisions of the Tribunal referred supra. Admittedly, the repair in the present appeal is before 16.6.2005 and the services were being provided by the appellant under the rate contract. This fact stands admitted by the original adjudicating authority. The Tribunal i....

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....ed and for the services of repairing of the said transformers. In our considered view the payment of the service tax liability under "maintenance or repair" services post 15.6.2005 needs re-quantification. Upholding the demand of service tax liability and the interest thereof for the period post 15.06.2005, we remit the matter back to the adjudicating authority to reconsider the limited prayer of the appellant regarding the cost of the material that needs to be reduced from the valued on which tax liability is due. Appellant is also required to discharge the interest on re-quantification of tax liability. 6.6 The plea raised by the learned Counsel that the issue is hit by limitation has no legs to stand as we find from the records that t....