ST - Carpentry work involving
different types of furniture items, modular partitions, fixation of
false ceiling, painting of walls and ceilings cannot be classified under
Interior decorator services: CESTAT
MUMBAI
: REVENUE alleges that during the period 1999-2003 the appellant
undertook various activities like carpentry work involving different
types of furniture items, modular partitions, fixation
of false ceiling,
painting of walls and ceilings etc. and the same is chargeable to
Service Tax under the ambit of "Interior decorator".
The lower authorities confirmed the demand and hence an appeal came to be filed in the year 2010.
This appeal was decided recently.
The
appellant submitted that activity conducted by them could not fall
under "Interior decorator services" but may fall under the category of
‘Erection, Commissioning or Installation Services" which came into
service tax net from 16 th June 2005. It is also submitted that an
identical issue has been decided by the Tribunal in the case of Spandrel
v. CCE Hyderabad/Kochi - 2010-TIOL-830-CESTAT-BANG in favour of the
appellant therein.
The AR justified the demand and also
submitted that since the appellant was enhancing the interior of the
flat where they undertook the work of modular partition, the activity
would definitely fall under the category of "interior decorator".
The
Bench, after narrating the facts, extracted the defiition of "Interior
decorator" and observed that the activities which are undertaken by the
appellant are not falling under the category of "interior decorator
services".
Noting that there is strong force in the
submissions made by the appellant that the issue is finally settled by
the decision of the Tribunal in the case of Spandrel (in which the
present Member(J) was a Member), the Bench extracted paragraphs 7 & 8
and concluded that the order is unsustainable and liable to be set
aside.
In fine, the impugned order was set aside and the appeal was allowed with consequential relief.
In passing: Perhaps a corrigendum is on its way for the extraction.
(See 2015-TIOL-1961-CESTAT-MUM)