The Customs, Excise & Service Tax Appellate Tribunal, Allahabad, ruled that no service tax is payable on indivisible contracts of transfer of property along with service of erection, installation prior to 01.06.2007.
The bench viewed that in the case of indivisible contracts were the supply or transfer of property in goods was also involved along with the provision of service of erection, installation and commissioning no service tax could have been levied prior to 01.06.2007.
The tribunal held that service tax itself was not leviable in respect of these services provided by the appellant, then the question of admissibility of abatement/ exemption under Notification No 19/2003-ST becomes irrelevant.
The tribunal found that CESTAT has constantly been taking view in respect of admissibility of CENVAT credit in on warranty services provided through third party – authorized service centres.
Facts
Appellant is engaged in the manufacture of electronic and electrical goods such as Colour Television, Computer sets and Computer Monitor, Air Conditioner, refrigerator etc. They are also providing taxable services in categories such as Repair & Maintenance, Commissioning and Installation, Consulting Engineer, Online Information & Data Access and Retrieval, Intellectual Property Rights etc, and are paying service tax on Transport of goods by Road (GTA) as a service recipient under reverse charge mechanism.
Though the show cause notice in the present case was issued answerable to Commissioner Central Excise Noida, however vide letter issued by the office of the Chief Commissioner, Customs, Central Excise and Service Tax, Meerut the Chief Commissioner transferred / assigned the show cause notice for adjudication in terms of the Circular issued by the Central Board of Excise & Customs Commissioner, Central Excise & Service Tax (Audit), Ghaziabad New Delhi. Accordingly, a corrigendum to the show cause notice was issued and matter has been adjudicated by the Commissioner (Audit).
Appellant is engaged in the manufacture of electronic and electrical goods. They also undertake sale and installation of the Air Conditioner imported by them. They pay appropriate taxes and duty as leviable under the Finance Act, 1994 and Central Excise Act, 1944. They are availing the credit of taxes and duties paid by them on inputs, input services and capital goods.
Case Details
Case Name: M/s L.G. Electronics (India) Pvt. Ltd. v/s Commissioner of Central Excise & CGST, Ghaziabad
Citation: Service Tax Appeal No.70634 of 2017
Counsel for Petitioner : Shri Atul Gupta, Advocate & Ms Usmeet Kaur Monga, Advocate
Counsel for Respondent : Shri Manish Raj, Authorised Representative
Court: CESTAT, Allahabad
Judge: Mr. P.K. Choudhary, Member (Judicial) And Mr. Sanjiv Srivastava, Member (Technical)
Decision Date: 08/08/2024
