2024 (2) TMI 1450

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....r Repair Service", "Works Contract Service", Transport of Goods by Road" and Installation of Thermal insulation". The appellant is registered with Service Tax Department and are holding Registration No. AFNPP2017EST001. They are filing their ST-3 returns regularly. 1.2 The appellant is service provider inter alia engaged in providing service of execution of various contracts / work orders to its clients bySupplying the thermal insulting material and applying them on the equipment, structures at the factory / business premises of the service recipients. 1.3 As the service provided by the appellant involves material and service, the appellant is availing the benefit of Notification No. 01/2006 ST dated 01.03.2006 as amended by Notificat....

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....urpose of payment of service tax, hence, the service rendered by the appellant is classifiable under the Installation of Thermal Insulation and not under the works contract. Accordingly, the appellant is liable to pay differential service tax. 2. Shri Anil Gidwani, Learned Counsel appearing on behalf of the Appellant at the outset submits that on the identical facts involving the same legal issue in the appellant's own case, this Tribunal vide Final Order No. A/10063/2023 dated 16.01.2023 in Service Tax Appeal No. 10535 of 2013 held that the service of Installation of Thermal Insulation is works contract service. Accordingly, the entire demand is liable to be set aside and appeal be allowed. 3. Shri R.R Kurup, Learned Superintendent (....

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....on service. 33 The aforesaid exemption entry is applicable on taxable category viz. Erection, commissioning or installation, under a contract for supplying a plant, machinery or equipment or structures and erection, commissioning or installation of such plant, machinery or equipment or structures. The Learned Commissioner denied the benefit of said entry to the Appellant on the ground that Appellant is not supplying plant, machinery, equipment or structures, but carrying out thermal insulation and hence benefit of 67% abatement from gross value would not be available to appellant as the condition laid down in the said Notification are not fulfilled by appellant. However, we find that in above column (4) of the table which is rel....

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....leviable to tax as sale of goods and appellant only supply the insulation material and used the same towards completion of thermal insulation. We find that the Works Contract Service was introduced by the Finance Act, 2007 w.e.f. 1-6-2007 by insertion of sub-clause (zzzza) in Section 65(105) of the Act. The provision reads as under : (zzzza) to any person, by any other person in relation to the execution of a works contract excluding works contract in respect of roads, airports railways, transport terminals, bridges, tunnels and dams. Explanation : For the purposes of this subclauses, "works contract" means a contract wherein, - (i) Transfer of property in goods involved in the execution of such contract is leviable to tax....