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2024 (5) TMI 133 - AT - Service TaxLevy of service tax - Construction of Residential Complex Service and Commercial / Industrial Construction Service - providing construction service of composite nature - HELD THAT - The documents produced sufficiently established that the contracts are composite in nature. The decision laid down by the Tribunal in the case of REAL VALUE PROMOTERS PVT. LTD., CEEBROS PROPERTY DEVELOPMENT, PRIME DEVELOPERS VERSUS COMMISSIONER OF GST CENTRAL EXCISE, CHENNAI 2018 (9) TMI 1149 - CESTAT CHENNAI would be squarely applicable. The said decision has been followed by the Tribunal in the case of M/S. JAIN HOUSING CONSTRUCTION LIMITED VERSUS COMMISSIONER OF SERVICE TAX, CHENNAI 2023 (2) TMI 1044 - CESTAT CHENNAI and was upheld by the Hon ble Apex Court in THE COMMISSIONER OF SERVICE TAX VERSUS M/S. JAIN HOUSING AND CONSTRUCTION LTD. 2023 (9) TMI 816 - SC ORDER , by dismissing the Department appeal. The demand cannot sustain and requires to be set aside - appeal allowed.
Issues involved: Appellant providing construction services, non-payment of service tax under specific categories, imposition of penalties, appeal against confirmation of demand.
Summary: Issue 1: Non-payment of service tax under specific categories The appellants were engaged in providing construction services and were registered under 'Construction of Residential Complex Services' and 'Commercial / Industrial Construction Services'. A Show Cause Notice was issued for non-payment of service tax under these categories for the period from 2005-06 to 2009-2010. The Original Authority confirmed the demand and imposed penalties, which was upheld by the Commissioner (Appeals). Issue 2: Nature of contracts and applicability of service tax The appellant argued that the construction services were composite in nature, involving both materials and services, citing specific contracts as evidence. Referring to legal precedents, including decisions by the Hon'ble Apex Court and Tribunal, the appellant contended that composite contracts should not be subject to service tax prior to a certain date. The Tribunal's decision in similar cases was highlighted to support the appellant's position. Decision: After considering the arguments and evidence presented, the Tribunal concluded that the demand of service tax confirmed under Construction of Residential Complex Service and Commercial / Industrial Construction Service was not sustainable. The Tribunal found that the contracts were composite in nature, as evidenced by specific agreements, and therefore set aside the impugned order, allowing the appeal with consequential reliefs as per law.
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