PERFECT ELECTRICALS Vs. COMMISSIONER OF CENTRAL EXCISE, MYSORE

JUDGEMENT

(1.) BY this application, the applicant is seeking condonation of delay of 05 days in filing the appeal. The learned Chartered Accountant informed the Bench that the impugned order was received in the Chartered Accountants office and by mistake, they had took the wrong date of receipt. Since the delay is marginal, in terms of the Tribunals practice, I condone the same in allowing the COD application.

(2.) THE learned Chartered Accountant informed the Bench that the appellants were carrying on repair and re -conditioning of transformers. The Revenue proceeded against the appellants for non -payment of service tax under the category of Repair and Maintenance Service which is a part of the service. The learned Chartered Accountant argued that the said service would not come within the purview of the term repair and maintenance service. The reason given by him is that the said service is actually a Works Contract. Referring to the definition of the Works Contract, he stated that in the Works Contract, they have specified only certain services and the services in the present appeal does not appear. Therefore the said service would not come within the category of repair and maintenance service.

(3.) ON a careful consideration of the matter, I find that the appellants were carrying out repair and reconditioning of transformers. This is not a dispute. Prima facie, the appellants do not have a strong case on merits. Further it is noticed that the lower authority had not given any abatement towards the cost of material while computing the service tax liability. The Chartered Accountant states that around 25% only will be service component. It is also seen that the lower authority confirmed the demand only with effect from 16 -6 -2005 when the definition of maintenance contract was amended. Therefore, I order to pre -deposit a sum of Rs. 25,000/ - (Rupees Twenty five thousand only) which is to be paid within a period of three months from today. On such deposit, the pre -deposit of balance amount of service tax and interest stands waived and its recovery stayed till the disposal of the appeal. The Revenue shall not take any coercive action till the disposal of the appeal. Call on to report compliance on 2nd April 2009. (Pronounced and dictated in the open court)