Case Law Details
KEC International Ltd Vs Commissioner of CGST (CESTAT Chandigarh)
CESTAT Chandigarh Held that benefit of exemption under notification No. 45/2010-ST dated 20.07.2010 is available if the taxable services are rendered for transmission/ distribution of electricity.
Facts-
The appellant is engaged in the manufacture of power transmission towers and parts and accessories. The appellant is also engaged in the supply of such towers, parts and accessories and erection, commissioning and installation of such towers. It was allotted two separate contracts by various Electricity Distribution Authorities. The appellant discharged excise duty and VAT on the sale price of the parts of towers sold to EDAs under the first contract. For the second contract, the appellant was using materials such as concrete, reinforcement steel, nuts, bolts etc. and was discharging its service tax liability under works contract services.
The department issued a show cause notice alleging that the value of towers/parts supplied by the appellant under the first contract should have been added to the value of the second contract for determining the service tax liability. It was also alleged that the appellant had artificially split the two contracts to evade the payment of service tax. This show cause notice was adjudicated by order dated 31.01.2013 confirming the demand levied in the show cause notice. Being aggrieved, the appellant has preferred the present appeal.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
