COMMISSIONER OF CENTRAL EXCISE, KANPUR Vs. AGRA COMPUTERS

JUDGEMENT

(1.) HEARD the ld. DR Shri Negi for the appellant/Revenue and ld. Counsel Shri Udit Jain for the respondent/assessee. Revenue has preferred this appeal against the order of the Commissioner (Appeals), Kanpur dated 22 -5 -2008 setting aside the adjudication order dated 8 -1 -2008 passed by the Assistant Commissioner, Agra. A Show Cause Notice dated 18 -12 -2006 was issued alleging that the assessee was providing Business Auxiliary Service (BAS) a taxable service defined under Section 65(19) of Finance Act, 1994 (the Act); that the several agreements between the assessee and Dakshinanchal Vidyut Nigam Ltd. (DVVNL) revealed that it was providing BAS to DVVNL; that for the period in issue - 10 -9 -2004 to 31 -3 -2006, the assessee failed to obtain registration as a service tax provider; to remit tax for the taxable services provided; and the assessee is consequently liable to remit service tax, interest and penalties as specified in the Notice. Assessee submitted its response to the Show Cause Notice denying liability and claiming that it does not provide BAS; and that services provided by the assessee either constituted information technology service or support service for business or commerce.

(2.) AFTER following the due process and on analysis of the several agreements between the assessee and DVVNL, the adjudicating authority concluded that the assessee was providing the taxable BAS and confirmed liability of service tax of Rs. 4,36,216/ -; interest under Section 76; penalty under Section 76; penalty in an amount equal to the service tax demand under Section 78 of the Act; and penalty as stipulated under Section 77 of the Act.

(3.) CONTENDING that the assessee's operations fall clearly within BAS and neither under support service for business or commerce nor under information technology service, Revenue has preferred this appeal.