SARASWATI TRADERS Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) THE Appellant is provided service to BSNL carrying out the activity of commissioning and installing using certain goods in the course of execution of contracts. When it faced service tax demand of Rs. 14,19,234/ - holding that the appellant was liable for carrying out the activity of erection, commissioning and installation alongwith works contract, service provided, it went before the learned first Appellate Authority to buttress its claim. Learned Commissioner (Appeals) examined the issue and considered entire plea of the appellant and framed four issues as under:

(2.) HE answered the issues holding the appellant liable to service tax under the category of providing of service of Commissioning, erection and installation and applied consequence of law as ordered in order of adjudication. He also examined the realizations made by appellant from BSNL alongwith the contracts executed between the parties. For the materials supplied by the appellant, learned Commissioner (Appeals) granted them concession under the -SX, dated 20 -6 -03. Considering entire matter properly, the Authority came to the conclusion that the demand raised by adjudication shall got modified by the extent of relief granted by appellate order. However, that demand was not quantified by the appellate order.

(3.) LEARNED DR Shri Vijay Kumar submits that even if the demand is not quantified by appellate order, that demand can be quantified taking the principles laid down by the learned Commissioner (Appeals). Once effect to that order is given there shall be huge liability to service tax.