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2017 (2) TMI 1311 - AT - Central ExciseWorks contract service - construction activity - whether appellant is liable to service tax in respect of the contracts executed for the period from 10.9.2004 to 31.5.2007? - Held that: - Law relating to levy of service tax on work contract was enacted with effect from 1.6.2007. Although theory of equivalence was enacted in section 67 of the Finance Act, 1994 with effect from 18.5.2006 to determine the value of the services involved in works contract, law relating to the levy of service tax on works contract was enacted with effect form 1.6.2007 - There shall be no levy of service tax on the indivisible works contract executed from 10.9.2004 to 31.5.2007. But for the period thereafter, appellant shall be governed by section 67 of the Finance Act, 1994 for determination of value of service involved in the works contract made taxable with from 01.06.2007 and by the composition scheme, if any, opted by it if otherwise not deniable to such scheme. Penalty - Held that: - in view of the confusion of the law relating to leviability of service tax on works contract, there shall be no penalty. Appeal allowed in part and part matter on remand.
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