2024 (10) TMI 1461

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....t, 1994 with the department. The appellant while providing the service of the insulation and paying service tax have availed the benefit of the Notification of 01/2006-ST dated 01.03.20006 as amended by Notification no. 21/2006-ST dated 23.05.2006. Accordingly they have availed the abatement of 67% of the taxable value received by them from their clients. The department has entertained a view that the service of the insulation provided by the appellant falls outside the preview of the eligibility criteria for the abatement as per Notification No. 01/2006-ST dated 01.03.2006 as amended in as much the service provider is not supplying plant, machinery equipment for structure but providing service of supplying and applying thermal insulation o....

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....ellants simply is that their insulation material or is being applied on the plant, machinery or equipment installed in their clients premises. This activity is in no way covered under the said notification. Hence, the equipment benefit of the said notification is not available to the appellants and thereby they have wrongly availed the benefit of the said notification No. 1/2006-ST during the period November 2007 to September 2010. The demand in this regard alongwith interest and penalty is upheld." 4. The learned advocate appearing for the appellants have drawn my attention to this Tribunal's decision in case of M/s Rudra Engineering. Vs. Commissioner of Central Excise & Service Tax-Vadodara-i whereby vide Final Order No. 10427-20149/202....

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....5. (zzd) Erection, commissioning or installation, under a contract for Supplying a plant, machinery or equipment and erection commissioning or installation of  such plant, machinery or equipment. This exemption is optional to the commissioning and installation agency. Explanation - the gross amount charged from the customer shall include the value of the plant, machinery equipment parts and any other material sold by the commissioning and installation agency during the course of providing erection commissioning or installation 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 ....

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.... tax/ VAT. Hence, in our opinion, the Appellant are eligible to the benefit of the Notification No. 1/2006-S.T., dated 1-3-2006. 5.1 The second issue in the present appeal is wrong classification of service under Works Contract Service. As per the revenue the appellant - service provider has wrongly classified the service rendered as „installation of thermal insulation‟ as „Works Contract‟ in as much as the condition of transfer of property as per the definition of „Works Contract‟ has not satisfied & also the contract is not 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....