ABC ELECTRICALS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE delay in filing the present appeal is of 30 days which stands attributable to the proprietor of the appellant -company being away to his native place and falling sick there. In view of the above and keeping in mind that the delay is on the lower side, we condone the same and allow the COD application. As regards stay petition, we find that the demand of Rs. 22,53,205/ - stands confirmed against the appellant along with imposition of penalty of identical amount u/s. 78 of the Finance Act and Rs. 5,000/ - u/s. 77 of the Finance Act, 1994. The said confirmation is on the ground that during the period 2004 -05 to 2007 -08 the appellant has provided erection, commissioning or installation services to M/s. Rajasthan Vidyut Vitran Nigam Ltd. (RVVNL). An amount of Rs. 20,000/ - stands confirmed on the ground of providing "rent -a -cab services.

(2.) Ld. Advocate submits that services provided to M/s. RVVNL are providing single point fitting in the houses in rural areas under 'Kuteer Jyoti Yojana' by drawing cables from poles to the house/tightening in the clamp and providing a switch and holder with bulb as per contract awarded by M/s. Jaipur Vidyut Vitran Nigam Ltd. They were also laying cables under or along side roads and between grids and sub -stations/transfer sub -stations enroute and laying of cables upto the distribution point of residential houses. He submits that this stand clarified by the Board vide their Circular No. , dated 24 -5 -2010 that such activities are not taxable services under any clause of subsections (105) of Section 65 of the Finance Act, 1994. We have seen the said Circular of the Board which provides that laying of electric cables upto distribution point of residential or commercial localities/complex is not a taxable service under the category of 'erection commissioning or installation'. As such at this stage, we are of the view that the appellant has a good prima facie case in its favour so as to allow the stay petition unconditionally, we order accordingly.