The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Ahmedabad denied a refund of Service Tax and the interest paid as there was no maintenance or repair of computers, computer systems, or computer peripherals.
The appellant, M/s. Chashmita Engineers Pvt Ltd is engaged in the provision of various services under the head of Management, maintenance and Repair service, and erection commissioning and installation service.
The Counsel for the appellant, Abhay Desai, submitted that the appellant had provided services under a contract with the Transport Department Government of Gujarat for Repairs and Maintenance service of the computerized system installed at the RTO check post and further argued that Repairs and Maintenance Services of Computerize System were exempted from Service tax as per notification No. 12/2003-ST.
The said notification was rescinded vide Notification No. 7/2004-ST dated 09.07.2004 and therefore the service provided by them became taxable only from 09.07.2004. the Counsel argued that the Adjudicating Authority while determining the tax liability for the aforesaid period levied Service tax on the first bill dated 08.03.2004 covered the period from 08.12.2003 to 07.03.2004 but, levied a tax on the bill dated 08.06.2004, as well as 08.09.2004 and hence the service provided by them, was exempted under Notification No. 20/2003-ST and therefore, the Service Tax and the interest paid by them be refunded.
A Coram consisting of Ramesh Nair, Judicial Member, and Raju, Technical Member observed that “It is seen that the Notification No. 20/2003-ST provides exemption on;y 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 a computer system does not make it Computer, Computer System, or Computer Peripherals. In these circumstances, we do not find the appellant is entitled to the benefit of Notification No. 20/2003-ST and consequently, the appeal is dismissed.”
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