Commissioner of Central Tax Secunderabad – GST Vs Sri Comfort Air Products and Services (CESTAT Hyderabad)
The case concerns an appeal filed by the tax department before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad against an order dated 24.10.2016 passed by the Commissioner. Through the impugned order, the Commissioner had dropped the proceedings initiated by a show cause notice dated 20.10.2015. The department challenged the order on the ground that certain aspects had not been properly considered while deciding the issue.
The respondent was engaged in providing several taxable services including Works Contract Service (WCS), Management, Maintenance or Repair Service (MMRS), Erection, Commissioning and Installation Service (ECIS), Business Auxiliary Service (BAS), and Goods Transport Agency Service (GTA). The dispute arose from work orders executed during the period 2010-11 to 2014-15 relating to the supply and installation of air conditioning (AC) systems.
The respondent executed two types of work: installation of AC systems and HVAC works. For installation of AC systems, the work was divided into two categories. The first was “High Side Work,” which involved supply of outdoor and indoor units of AC systems. In respect of this part, excise duty and VAT were paid and it was not in dispute. The second was “Low Side Work,” which included activities such as lifting, shifting, positioning and commissioning of units, supply and installation of copper refrigerant piping, PVC drain piping, control-cum-transmission wiring, pressure testing and commissioning of the VRV system and central control wiring. HVAC work orders also involved supply, installation, testing and commissioning of ducts, boxes, dampers and air diffusers.
