𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗼𝗻 𝗪𝗼𝗿𝗸𝘀 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Thermal insulation involving supply and use of insulating material, with VAT paid, qualifies as 'Works Contract Service' and is exempt from Service Tax."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Rudra Engineering 𝗜𝘀𝘀𝘂𝗲: Whether abatement of 67% was wrongly availed and if thermal insulation was wrongly classified as "Works Contract Service." 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant supplied insulating materials, used them for thermal insulation, and paid VAT. A show cause notice demanded Service Tax, alleging wrong classification and abatement.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal affirmed that Notification No. 1/2006-S.T., dated 1-3-2006 applies to materials beyond plant, machinery, or equipment. The appellant provided taxable services while also paying VAT on insulating materials. The activity meets the definition of "Works Contract Service," making Service Tax non-applicable. The appeal was allowed, setting aside the demands and penalties.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: Rudra Engineering vs. C.C.E. & S.T.-Vadodara-I 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 16 January 2023 📜 This ruling reinforces that thermal insulation activities involving material supply and VAT payment fall under "Works Contract Service," exempting them from Service Tax.