2025 (4) TMI 771

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....s. National Thermal Power Corporation (NTPC), Kahalgaon under different letters of award. The appellant was basically a land oustee of Kahalgaon, Bihar whose land was acquired for installation of a thermal power station of NTPC and for that reason, the appellant was awarded with small contracts of service. The appellant had undertaken provision of services to M/s. NTPC, Kahalgaon during the Financial Year 2004-05 and received payments from M/s. NTPC, Kahalgaon. 2. A Show Cause Notice dated 17.02.2010 was issued to the appellant wherein it was inter alia alleged that the appellant had rendered taxable services falling under the categories of 'management, maintenance or repair service' as per Section 65(105)(zzg) of the Finance Act, 1994 a....

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....t from M/s. NTPC, Kahalgaon that they had undertaken the services along with supply of materials and accordingly, the appropriate classification of the said services would be 'works contract service', which came into the Service Tax net only with effect from 01.06.2007. Accordingly, the appellant submits that the demand of Service Tax under the category of 'management, maintenance or repair service' and 'manpower recruitment or supply agency service' confirmed in the impugned order is not sustainable. 7. On the other hand, the Ld. Authorized Representative of the Revenue submitted that the appellant has rendered the services of "Monsoon Patrolling for MGR Track, Extension of FQA Lab., work of Filling of Ash at different low lying area an....

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.... into the Service Tax net with effect from 01.06.2007 only. The appellant submitted that the demand in the present case pertains to the period from October 2004 to December 2007, which is prior to the introduction of 'works contract service' and thus, the services rendered by the appellant are not at all liable to Service Tax during the period under dispute. 9.1. We find that the appellant has produced various work orders received from M/s. NTPC, Kahalgaon wherein the scope of work has been clearly explained. For the sake of ready reference, the scope of the work as per Work Order No. CS: 5276/(B-7)/844 dated 17.02.2005 pertaining to "Filling of ash at different low lying area and widening of cess along MGR track of Rly." is scanned and ....

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....e hold that classification of the said service under the category of 'manpower recruitment or supply agency service' to demand Service Tax in the impugned order, is not legally sustainable. 10. In view of the above, we hold that the demand of Service Tax confirmed under the categories of management, maintenance or repair service' and 'manpower recruitment or supply agency service' in the impugned order is not sustainable. 10.1. Since the demand itself is not sustainable, the question of demanding interest or imposing penalties does not arise. 11. In the result, we set aside the impugned order and allow the appeal filed by the appellant. (Operative part of the order was pronounced in open court) ============= Document 1 2 ....