Custom, Excise & Service Tax Tribunal
M/S. Gb Engineering Enterprises Pvt. ... vs Cce, Tiruchirappalli on 9 January, 2017
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, CHENNAI
ST/30/2007
(Arising out of Order-in-Appeal No. 79/2006 dated 29.11.2006 passed by the Commissioner of Central Excise (Appeals), Tiruchi)
M/s. GB Engineering Enterprises Pvt. Ltd. Appellant
Vs.
CCE, Tiruchirappalli Respondent
Appearance Shri M.N. Bharathi, Advocate for the Appellant Shri Jude Joseph, AC (AR) for the Respondent CORAM Honble Shri D.N. Panda, Judicial Member Honble Shri Madhu Mohan Damodhar, Technical Member Date of Hearing / Decision: 09.01.2017 Final Order No. 40044 / 2017 Per D.N. Panda The appellant says that the advance amount of Rs.66,59,310/- received from the contractee was against bank guarantee as has been recorded by the adjudicating authority in para 4 to 6 of his order. There was no provision of taxable service made by the appellant to receive such money. Therefore, no tax element thereon can be calculated to make a levy on the appellant.
2. Proposition of the appellant is correct when the scheme of Finance Act, 1994 is read. There should be incidence of levy that arises when there is provision of taxable service. That situation not having reached, there shall not be leviability of service tax on the Advance received. Accordingly, appeal is allowed and consequential relief, if any, shall flow in accordance with law.
3. We may state that learned adjudicating authority, to protect the interest of Revenue, may cause enquiry as to the period when the advance in question was adjusted. Adjustment is the crucial point of time that may give rise to levy of service tax in the event the adjusted extent of advance was resulted in provision of taxable service.
(Dictated and pronounced in open court)
(MADHU MOHAN DAMODHAR) (D.N. PANDA)
Technical Member Judicial Member
Rex /Rkp
2