Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2024 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (4) TMI 433 - CESTAT ALLAHABADBenefit of service tax exemption - Works contract service - Composite contract - denial of benefit on the ground that the road so constructed was a part and parcel of composite contract and no separate price bifurcation was available on record and hence the Appellant was not entitled for availing benefit of road construction under works contract service - whether the present contract is a composite contract or a contract segregating various items of work while indicating the amounts charged for each activity? - HELD THAT:- In the case of M/S LEOTRONICS SCALES PVT. LTD. VERSUS CCE, JALANDHAR (HQ. AT CHANDIGARH) [2020 (4) TMI 146 - CESTAT, CHANDIGARH] Chandigarh bench has observed that The present roads have been constructed to facilitate the movement of the transport vehicles to weigh bridges and is not a part of the residential complexes, therefore, its value cannot be subjected to service tax and the appellant has rightly excluded the same from the total value of construction of weigh bridges in claiming the abatement under the respective notifications. Undisputedly the appellant entered into a sub-contract with M/s Subhash Infra Engineers Pvt. Ltd. for this item of the work. They have produced the invoices raised by the sub contractor upon them for the work sub contracted. The fact about allocation of this work to sub contractor by the appellant is not disputed by the revenue in the present case. That being so, the finding recorded by the authorities below that the contract was composite contract for entire project could not be upheld. Further from the fact that value of contract between the appellant and their service recipient is required to be determined in two manners as per the clause 5.1, and the lower of two values has to be adopted, clearly show that the both the parties to contract, i.e. appellant and Lalitpur Power Generation Company Ltd. viewed that contract could be vivisected into sub contracts, to be executed by the sub contractors. It is settled position in law that the contract should be viewed in the context they are entered and as per the understanding of the parties to the contract. It is also not the case of revenue that value of contract was determined in terms of the (ii) of Clause 5 as per which the total value of contract was to be restricted to Rs 675 crores. No finding in this respect has been recorded in the impugned order. In absence of any such findings, there are no merits in the conclusion arrived by the lower authorities that it was a composite contract. The impugned order is set aside - appeal allowed.
|