Case Law Details
Baba Ram Dev Construction & Engineer Vs Commissioner of Central Excise (CESTAT Delhi)
CESTAT Delhi held that maintenance of pipelines are not exempted under any notification or provision or circular. Accordingly, the same is taxable under the category of ‘management, maintenance and repair’ services.
Facts- The appellant was engaged in providing various services which fell under the categories of construction of complex services, management, maintenance and repair services, etc. A show cause notice dated 18.10.2011 was issued to the appellant covering the period 2006-2007 to 2010-2011 demanding duty of Rs. 35,58,757/- under the categories of ‘construction of complex service’, ‘technical testing and analysis service’ and ‘Management, maintenance & repair service’.
The Original Authority, confirmed the demands proposed in the SCN and also imposed penalties under sections 76 and 78 of the Finance Act, 1994. On appeal, by the impugned order, the Commissioner (Appeals) set aside the demand on “construction of complex services” and upheld the remaining part of the demand. He also held that the penalties under section 76 and 78 shall be correspondingly modified.
Conclusion- We find that there is no case for the appellant to claim an exemption from payment of service tax under management, maintenance and repair services either under section 98 of the Act or under the two CBEC Circulars, indicated above. Undisputedly, the appellant had not maintained any noncommercial buildings of the Government, but had maintained pipelines which were not exempted under any notification or provision or circular presented before us. For these reasons, we find that the impugned order was correct and proper in confirming the demand under the head of management, maintenance and repair services.
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