TaxTMI 
TaxTMI 
2024 (4) TMI 234
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.... so no Service Tax was payable during 2006-07 to 2010-11. A search was carried out the business premises of appellant on 08.06.2011 and statement of proprietor of appellant was recorded on 09.06.2011 wherein he inter alia deposed that they were under the impression that as their major customers is Electricity Department, Daman which is a Govt. Department, therefore, they are not liable to pay Service Tax. Another statement was recorded on 03.07.2011. Appellant had paid Rs. 2,98,700/-, Rs. 1,99,974/- and Rs. 1,99,974/-on 30.06.2011, 04.07.2011 and 04.07.2011 before issue of the SCN on 05.07.2011 and Rs. 2,35,204/- on 02.08.2011 well within 30 days from the date of issue of the SCN. 2. A Show Cause Notice dated 05.07.2011 was issued demanding Service Tax of Rs. 5,81,794/- for 2006-07 to 2010-11 under Section 73 with interest under Section 75 and penalty under Section 76, 77 and 78 of the Finance Act, 1994 with proposal to appropriate the amount of Rs. 2,98,700/- and Rs. 1,99,974/- paid on 30.06.2011 and 04.07.2011. 3. Appellant made detailed submissions against the said demand but the learned Joint Commissioner confirmed the said demand of service tax of Rs. 5,81,794/- with int....
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....r No. 123/05/2010-TRU dated 24.05.2010, Service Tax should not be imposed on the work done upto the Distribution Point and hence the payment of the Service tax, interest and Penalty towards the work done upto the Distribution Point is not leviable. For better appreciation of the facts, the extract of the said circular is reproduced below: Cable laying under or alongside roads-Service tax liability Circular No. 123/5/2010-TRU, dated 24-5-2010 F. No. 332/5/2010-TRU Government of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi Subject : Applicability of Service tax on laying of cables under or alongside roads and similar activities - Clarification regarding. Disputes have arisen in some parts of the country regarding applicability of service tax on certain activities such as shifting of overhead cables to underground on account of renovation/widening of roads: laying of electrical cables under or alongside roads/railway tracks; between grids/sub-stations/transformers the distribution points of residential or commercial complexes and such activities as electrification of railwa....
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.... generally remain excluded from this taxable service as well. (iv) site formation and clearance, excavation, earthmoving and demolition services' are attracted only if the service providers provide these services independently and not as part of a complete work such as laying of cables under the road. 3. The taxable status of various activities, on which disputes have arisen Based on the foregoing, the following would be the tax status of some of the activities in respect which disputes have arisen, 4. The conclusions drawn above are essentially general in nature and would have to be applied in an individual case depending upon its facts and circumstances. The pending disputes/cases may be decided based on the clarifications contained in this circular 9. On perusal of the above referred circular (Sl. No. 5 of the Table), it is clear that Laying of electric cables up to distribution point of residential or commercial localities/complexes is not taxable. Therefore legally the appellant is on strong footing but on examination of the evidences produced by the appellant, it is not forthcoming whether the services provided by them in respe....
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.... indicates the same were for the purposes works done for Assistant Engineer of the electricity department. 6. In our opinion an evidence to this effect which is documentary in nature and which clearly indicates that this service was provided and invoice issued to the Government Department is sufficient to hold that services were in relation to work done up to distribution point. Therefore we hold that for invoices which indicate that they were issued to the electricity department, no question of taxability of service will arise as per the above said board clarification. Only if there are any invoices in the name of private party can it be held that services were provided beyond distribution point. We accordingly hold that there should be no demand for the invoices which are issued in the name and designation of electricity authorities and the same can be confined only to invoices of erection services etc. issued to private party like invoices No. 065 dated 23.05.2007 issued to Daman polyfabs, (if part of the impugned demand). Again, we find that matter pertains to an issue, on which Board has issued the clarification which is relevant as per Serial No. 5 of the circular above. I....