Date of Order: 20.10.2022

Facts:

• The Appellant, M/s. Chashmita Engineers Pvt Ltd., are mainly engaged in Management, Maintenance and repair of Public Address System, AVETCS, of the Commissioner of Transport, Government of Gujarat, Way Bridges and Erection Commissioning and Installation of public Address System and Supply of Manpower for operation of RTO Check Post and to carry out o the repair work on man day basis. 
• They provided services under a contract with Transport Department Government of Gujarat for Repairs and Maintenance service from 03.12.2003. Repairs and Maintenance Services of Computerize System were exempted from Service tax as per notification No. 12/2003-ST dated 20.06.2003. The said notification was rescinded vide Notification No. 7/2004-ST dated 09.07.2004 and therefore the service provided by them became taxable only from 09.07.2004. 
• Appellant argued that Revenue while determining the tax liability on the first bill dated 08.03.2004 covered the period from 08.12.2003 to 07.03.2004 but, levied tax on the bill dated 08.06.2004 as well as 08.09.2004. However, the service provided by them was exempted and therefore, the Service Tax and the interest paid by them be refunded. He also argued that the penalty paid in respect of those clearances may also be refunded.
• The applicant stated that they had made voluntary payment for the half year ending March, 2007 and for the period amounting to Rs. 1,35,053/- and for the period April, 2007 to June, 2007 amounting to Rs. 3,40,470/- along with penalty under Section 78 amounting to Rs. 4,75,523/. He argued that the payment was made voluntarily and therefore, penalty under Section 78 should be set aside and refunded.
• Revenue contended that the penalty was paid after the inquiry was initiated by the preventive wing.

Issue:

• Whether appellant is entitled to the benefit of Notification No. 20/2003-ST ?
• Whether the imposition of penalty in respect of payments for the period September, 2006 to March, 2007 and April, 2007 to June, 2007 are concerned.

Order:

• The authorities observed that Notification No. 20/2003-ST provides exemption only to maintenance or repair of computers, computer systems or computer peripherals. The AVETCS systems can by no means be called computers, computer systems or computer peripherals. The mere fact that the AVETCS contains computer system does not make it Computers, Computer Systems or Computer Peripherals. 
• Hence, the appellant is not entitled to the benefit of Notification No. 20/2003-ST and consequently, the appeal on this ground is dismissed.
• the Automatic Vehicle Entry Tax Collection System (AVETCS) of Commissioner of Transport constitutes electronic weigh bridges, CCTV system, computers, servers, LAN & WAN, Electrical systems and related software; that when a vehicle comes.
• The authorities found force on the findings of Commissioner (A) that payments of service tax were made only after the initiation of preventive inquiry on 20.07.2007 and hence they cannot be treated as payments made during the normal course or prior to search conducted and therefore, the appellant’s' contention in this regard does not merit consideration.
• In view of above, the appeal is dismissed.