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ST demand can't be made under a category not specified in the show cause notice
Where show cause notice sought classification under consulting engineering services but demand was confirmed under "Erection, Commissioning and Installation Services", demand was, prima facie, not maintainable
In the instant case the department issued a show-cause notice to the assessee for the period from 1997-98 to 9-9-2004 seeking payment of service tax under category of consulting engineering services. The adjudicating authority came to conclusion that services rendered by assessee were not 'consulting engineers' services but were taxable under Erection, Commissioning and Installation Services and confirmed demand accordingly. The assessee argued that demand was invalid as show-cause notice did not put them on notice as to that services would be classified under 'Erection, Commissioning and Installation Services'. Thus, this stay petition was filed by assessee for the waiver of pre-deposit requirement.
The Tribunal held as under:
1) The assessee was not put to notice as regards the classification of its services under "Erection, Commissioning and Installation Services";
2) The assessee had made out a prima facie case for the waiver of the pre-deposit requirement of the amounts involved, as the Board's circular dated 8-8-2007 specifically clarified that services provided by assessee would be classifiable under the category of Erection, Commissioning and Installation Services from 10-9-2004 only;
3) In view of this, the application filed by the assessee for the waiver of the pre-deposit requirement and stay of recovery was allowed - KALPATARU POWER TRANSMISSION LTD. V. COMMISSIONER OF CENTRAL EXCISE (2013) 36 taxmann.com 581 (Ahmedabad - CESTAT)