Order Date – 27 July 2022

Facts – 

• The Appellant, Sconce Global Private Limited, is engaged in the business of setting up stalls for various companies at exhibitions.
• The appellant had classified these services with effect from 01.06.2007 under the head “works contract service” and had classified them under the heads of “commercial or industrial construction service” and “erection commissioning or installation service” prior to this date and paid Service tax.
• Multiple show cause notices were issued by the Revenue covering the period 2006- 2007, 2016-2017.
• All the show cause notices proposed classifying the appellant’s service under the head “Pandal and Shamiana”.
• The impugned orders have demanded and confirmed recovery of differential duty aggregating to Rs. 16.75 crores. Aggrieved the appellant filed an appeal.

Issue – 

• Whether the differential duty and penalty imposed by the authorities is sustainable?

Order – 

• The Tribunal observed that since it is undisputed that the appellant’s contract involved provisions of services as well as supply/deemed supply of goods they can only be classified under the head “works contract services” as per the law laid down in Supreme Court in Larsen & Toubro.
• Such services could not have been charged with Service tax under any other head either before or after 1.6.2007. 
• Therefore, the show cause notices demanding service tax under the head “Pandal and Shamiana services” from the appellant cannot be sustained. 
• Appeal allowed and order was set aside.