Customs, Excise and Gold Tribunal - Bangalore
Abb Ltd. vs The Commissioner Of Central Excise And ... on 15 November, 2007
Equivalent citations: [2008]12STJ413(CESTAT-BANGALORE)
ORDER S.L. Peeran, Member (J)
ST/Stay/228/2007 in Stay/336/2007
1. The appellants are required to pre-deposit Service Tax of Rs. 33,55,306/- and Education Cess of Rs. 67,104/- and likesum as penalty. The issue pertains to levy of Service Tax in respect of differential transportation charges and whether it has been covered under the 'Input Services' ? The issue has been referred to Larger Bench by this Bench in the case of M/s. India Cements and Others by Miscellaneous Order No. 412/2007 dated 13.8.2007.
2. Heard both sides. In view of the matter having been referred to Larger Bench, the stay application is allowed granting waiver of pre-deposit and staying its recovery. Matter to come up for hearing after the Larger Bench is heard and final order issued in the matter. The stay application is allowed.
ST/stay/233/2007 in ST/344/2007
3. In respect of Stay Application No. 233/2007 in Appeal No. 344/2007, the appellant is required to pre-deposit Service Tax of Rs. 3,55,86,521/- and Education Cess of Rs. 6,97,445/-. The appellants have also been imposed with penalty. The appellants have deposited the entire Service Tax and seeking waiver of pre-deposit of penalty amount. The appellants are engaged in the manufacture of various electrical equipments. They execute turnkey project for supply, installation and commissioning of power transmission and distribution systems. The Revenue has proceeded to bring this activity under the category of "Erection, Commissioning or Installation Services". The appellants took the stand that the period in question is prior to 1.6.2007 for which period there is no vivisection of contract and Service Tax was not leviable.
4. The learned Counsel refers to the Stay Order rendered in the case of L and T Ltd. v. CCE, Vadodara-II 2007 (7) STR 224 (Tri.-Ahmd.); Glaxo Smithkline Pharmaceuticals Ltd. v. CCE, Mumbai-IV ; and Blue Star Ltd. v. CCE, Hyderabad-II 2007 (5) STR 353. He submits that later two decision cited supra have decided the issue on merits. He submits that as they have already deposited the Service Tax, therefore, waiver of penalty be granted.
5. The learned SDR opposes the prayer and submits that the appellants should pre-deposit penalty also in the matter. She distinguished the judgments cited. She submits that as there were separate amounts raised by revenue for the different activities with separate contracts, therefore, the confirmation of Service Tax is justified.
6. We have carefully considered the submissions. We notice that the appellants are covered by the judgment of this Bench and Stay Order rendered by the Northern Bench in the case of L & T Ltd.(supra). They have already deposited the Service Tax amount.
7. Hence, the stay application is allowed granting waiver of pre-deposit of penalty amount. Matter to come up for final hearing along with another matter on 18th March 2008.
(Pronounced and dictated in open Court)