COMMISSIONERS OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX-SURAT-I Vs. KETAN ENGINEERING SERVICES
LAWS(CE)-2015-6-3
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on June 30,2015

Commissioners Of Central Excise, Customs And Service Tax -Surat -I Appellant
VERSUS
Ketan Engineering Services Respondents

JUDGEMENT

P.K.DAS,MEMBER (J) - (1.)REVENUE filed this appeal against the Order of the Commissioner, where the proceedings initiated under the Show Cause Notice dated 28.2.2007 was dropped.
(2.)After hearing both the sides and on perusal of records, we find that the respondent were engaged in providing the service of maintenance and repairs of plant and equipments of industrial clients like M/s. Essar Steels Ltd. and M/s. Reliance Industries Ltd., which was chargeable to Service Tax under Section 65(64) of the Finance Act 1994. A show cause notice dtd. 18.2.2007 was issued proposing demand of Service Tax amounting to Rs. 50,02,104/ - alongwith interest and to impose penalty under the category of Repair and Maintenance Service for the period July 2003 to March 2005. By the impugned order, the Commissioner of Customs & Central Excise, Surat I, dropped the proceedings initiated by show cause notice dtd. 28.6.2007. Revenue filed this appeal against the said order.
(3.)WE find that the Adjudicating Authority dropped proceedings following the decision of the Tribunal in the case of CCE, Jaipur Vs. Dusad Transformers and Switchgears P. Ltd. [2007 (5) STR. 37 (Tri. Del)]. It has also followed the Board circular No. dtd. 27.7.2005. The Adjudicating Authority observed that in the absence of any maintenance or repair contract, demand based on rate or value contract work orders are not sustainable.
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