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2019 (9) TMI 1518 - CESTAT KOLKATAClassification of services - services rendered under the subject contracts by the appellant - work of turnkey contracts on lump sum basis of design, engineering, fabrication, supply and erection, installation, commissioning of Central Air Conditioning plants at the customer’s premises - to be classified as “works contract” under Section 65(105)(zzzza) and hence liable to service tax on and from 01.06.2007 or as “erection, commissioning and installation” service under Section 65(39a) and taxable under Section 65(105)(zzd) of the Act for the period prior thereto? - HELD THAT:- This issue is no more res integra in view of the decision of the Hon’ble Supreme Court in COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT]. While holding that indivisible works contracts were liable to service tax only on and from 1st June, 2007, whereafter Finance Act 2007 expressly made such contracts liable to service tax and it was held that Works contract were not chargeable to service tax prior to 1.6.2007. Respectfully following the above decision of the Hon’ble Supreme Court, which are fully applicable to the instant case, it can be concluded that the services rendered by the appellant under the subject contracts are classifiable as works contract and are not liable to service tax under the Act during the period involved - the demand of tax and interest confirmed by the impugned order and the penalty imposed are unsustainable. Appeal allowed - decided in favor of appellant.
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