2026 (8) TMI 1750

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....ar, M.P. (herein after referred to as the Appellant) against the Order-in-Appeal. 2. Briefly stated facts of the case are that during the course of visit of the officers of the Central Excise Commissionerate, Kanpur, it was observed that the Appellant has got themselves registered under the category of "Commissioning and installation" Services only on 09.03.2005, whereas, they were providing "Commissioning and Installation" services since July, 2003 to M/s BHEL, Jhansi but they had started paying service tax with effect from Oct, 2004 only. It was noticed that M/s BHEL Jhansi had paid an amount of Rs.1,72,63,180.00 to the said Appellant as charges for "Commissioning & Installation", for the services provided by the Appellant to them duri....

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....96/- and E.Cess of Rs.39,812/- totaling to Rs.34,11,408/-. 2.2. Accordingly, a Show Cause Notice bearing C.No. V(15) Off/Adj/126/20072002-04 dated 18.02.2008 was issued to the Appellant demanding Service tax amounting to Rs.34,11,408/- along with interest and penalty. The said Notice was adjudicated vide Order-in-Original No.01/Add. Commr./ST/2009 dated 06.03.2009, by the Addl. Commissioner, Central Excise, Kanpur, passed vide C.No. V(15) Off/Adj/126/07 dated 06.03.2009, wherein the demand of service tax has been confirmed along with interest. Penalty equal to the service tax demand confirmed has also been imposed. 2.3. On appeal, the Ld. Commissioner (Appeals) upheld the demands confirmed in the impugned order. Aggrieved against the ....

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....lly not sustainable. 3.2. The Appellant submits that Board Circular No.80/10/2004-S.T., dated 17-09-2004, clarified that "Erection" service was to be taxed along with "Commissioning and Installation" from 10.09.2004. Notification No.25/2004-ST dated 10.09.2004, clearly exempts the service of erection provided by "Commissioning and installation Agency", received prior to 10th September, 2004. 3.3. In the of Power Best Electricals Limited Vs. CCEX, Calicut, reported at 2008 (9) S.T.R. 497 (Tri.-Bang), the Honorable Bench held in para 6 that erection services have become taxable only from the 10th September, 2004. 3.4. The Appellant further submits that the issue has been raised by Audit on the basis of information available on their ....

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....o.25/2004-ST dated 10.09.2004, clearly exempts the service of erection provided by "Commissioning and installation Agency", received prior to 10th September, 2004. We find that the said view has been held by the Tribunal, Bengaluru in the case of Power Best Electricals Limited Vs. CCEX, Calicut, reported at 2008 (9) S.T.R. 497 (Tri.-Bang), wherein the Tribunal has held in para 6 that erection services have become taxable only from the 10th September, 2004. Thus, by relying on the Board Circular and the decision of the Tribunal cited supra, we hold that the demand of service tax confirmed in the impugned order on this amount of Rs.1.72 crores received in connection with Erection service rendered by the Appellant prior to 10.09.2004 is legall....