CCE & ST Vs. GLOBAL ALLOYS PVT. LTD.

JUDGEMENT

(1.) REVENUE has filed this appeal against Order -in -Appeal No. 179 -CE/LKO/2012 dated 23.3.2012 which set aside the order -in -original dated 25.2.2011 in terms of which service tax demand of Rs. 6,39,883/ - along with interest and penalties including mandatory equal penalty under the Finance Act, 1994 was confirmed. The original adjudicating authority had confirmed the demand and imposed penalties on the ground that the respondents had not paid service tax on the services rendered in the form of supervision charges for mosquito net, tents, trousers and shorts liable to service tax under business auxiliary service and deliberately suppressed the details with intent to evade service tax. The original adjudicating authority did not accept the contention of the respondents that they were eligible for the benefit of Notification No. dated 10.9.2004 on the ground that the service was not in relation to agriculture, printing, textile processing or education and it was in relation to articles of textiles/apparels.

(2.) THE Commissioner (Appeals) set aside the order in original on the ground that in Section XI of the Central Excise Tariff Textile and textile articles cannot be segregated in the context of providing service relating to textile (under service tax) because in that case the basic purpose of the exemption notification would have been defeated. The Revenue has contended that textile and textile articles are not the same and that mosquito nets, and trousers and shorts cannot be called textiles, as they are articles of textile/apparels.

(3.) IN the light of the foregoing, Revenue s appeal is allowed.