2017 (6) TMI 56

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....es in connection with testing gas cylinders. They are also involved in painting and upkeep of old cylinders and collected charges for the same from the clients. The Revenue entertained the view that the charges collected by the appellant for upkeep and painting of the cylinders is liable to be taxed under the category of management, maintenance or repair services. Accordingly, proceedings were initiated against the appellant which resulted in the original order dated 25.08.2010. The original authority confirmed the service tax liability of Rs. 4,58,579/- and imposed penalty of equal amount along with penalty under section 76 and section 77 on the appellant. On appeal, the Commissioner (A) vide his impugned order upheld the original order wi....

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....ecords. We have examined the scope of work undertaken by the appellant. In fact the appellant's claimed that painting of cylinder will amount to manufacture before the lower authorities. The scope of work undertaken by them which involves painting and other incidental activities of the gas cylinders, to make them fit for again use is clearly covered by the tax entry of management, maintenance or repair services in terms of section 64(65) of Finance Act 1994. On the claim of the appellant for exemption under notification no. 12/2003-ST, we note that the following are the findings of the impugned order: "10. A plain reading of notification shows that to avail exemption of value of the goods and material, the same should be sold and such sale....