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2020 (10) TMI 2 - AT - Service TaxShort payment of Service tax - Construction Services in Respect of Commercial of Industrial Building and Civil Structures and Erection Commissioning and Installation - period October, 2004 to March 2007 - HELD THAT:- There is no dispute that the service provided by the appellant is otherwise specified under Works Contract Service. The criteria for qualification of Works Contract Service is that the service should be provided along with material. It is obvious that when the services on construction is provided along with the material the assessee needs to pay VAT or the Works Contract Tax. From the contract it is seen that the appellant is required to provide the service along with material like Cement, Metal, Steel Reinforcement, Sand, Charcoal, Salt and Earting Material. Moreover, in respect of the Works Contract Service the recipient of the service will deduct the Works Contract Tax which shows that the works contract service is suffered with works contract tax. As per this fact there is absolutely no doubt that the nature of service as well as facts such as service provided along with the material and it suffered works contract tax which clearly qualifies as Works Contract Service. Benefit of N/N. 01/2006-ST. - HELD THAT:- As per the condition of such notification for allowing the abatement, the material cost needs to be included in the gross value of the service charges. When the revenue itself has allowed the abatement, it has admitted that the material cost is included in the gross value of the Works Contract Service. With this fact also, it is clearly established that the service provided by the appellant is Works Contract Service. As per the Hon’ble Supreme Court’s judgment in the case of LARSEN & TOURBO LTD. [2015 (8) TMI 749 - SUPREME COURT] the works contract service is not taxable before 01.06.2007 - In the present case, the entire period is prior to the said date therefore, in view of the apex court judgment the service being Works Contract Service is not taxable. Appeal allowed - decided in favor of appellant.
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