Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 628 - CESTAT NEW DELHIClassification of services - works contract service or not - composite contracts or not - Wrongful payment of service tax - HELD THAT:- The contracts on which the service tax has been demanded by the impugned order-in-original, are contracts of composite nature where the transfer of property as well as service components are involved. It has already been held by Hon’ble Apex Court in the case of COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT] held that any contract which involves transfer of the property as well as service component same has to be classified as the work contract service and same will not be entitled for the classification as the service simplicitor - Considering the views of the Apex Court and of the fact that a new service under the category of work contract service was got enacted by the Finance Act since 1 June 2007, it is held that where both transfer of the property as well as the service component were involved in the respective contracts of the appellant, same are not taxable under the service tax simplicitor category and need to be classified under the work contract service and service tax need to be demanded accordingly. On the purchases which involved both transfer of the property in contract as well as the service component, the appellant was entitled to avail the composition scheme for payment of the work contract. The learned Adjudicating Authority has erred in holding that the appellant was not entitled to switch over to work contract service from the respective services in respect of the ongoing contract/purchase after 1 June 2007 to pay service tax under work contract composition scheme. The Adjudicating Authority should examine every contract which are subject matter of the present service tax demand to ascertain whether a contract is a composite indivisible work contract or not - appeal allowed by way of remand.
|