By Puloma Dalal, Jayesh Gogri, Mandar Telang Chartered Accountants
fiogf49gjkf0d
Repairs and maintenance services provided in absence of any agreement is not liable to service tax. Fabrication, erection and installation of steel storage tanks, dozers and settlers, etc. are not liable to service tax under “Business Auxiliary Services”.
Facts:
The assessee registered under Business Auxiliary Services and Goods Transport Agency Services also provided repairs and maintenance services on which no service tax was paid. Further, they also fabricated, erected and installed water tanks, etc., in the client’s factory and service tax was confirmed under “Business Auxiliary Services”. The Commissioner (Appeals) held that repairs and maintenance services provided by the respondent in terms of an agreement/contract are only liable to service tax and as the department was unable to produce such agreement, the said repair and maintenance service is not liable to service tax. Services of fabrication, erection and installation of storage tanks, etc., are not covered under “Business Auxiliary Services” and therefore not exigible to service tax. The department therefore filed this appeal.
Held:
In the absence of any evidence provided by the department that the services of repairs and maintenance were provided under agreement, the order of the Commissioner (Appeals) was upheld in this regard. Fabrication, erection and installation services were sought to be taxed under Business Auxiliary Services and the said services are not covered under “Business Auxiliary Services” as defined u/s. 65(19) and therefore the said services are also not exigible to service tax. The department’s appeal was dismissed.
