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2014 (5) TMI 136 - HC - Service TaxRate of service tax - Works contract - The works contract for civil works like construction of buildings, bridges or roads and repairs of such works carry tax liability at 2%. As against this, the works contract other than those mentioned above and for repairs of such works carry tax liability at 12%. - Held that:- From the materials on record, the Tribunal noted that (i) such barriers are installed for protection of the vehicles and pedestrians. The speeding vehicles on highway may skid accidentally. (ii) to avoid such accidents, the barriers work as road restraint systems. It provides for a crash cushion. The Tribunal, therefore, concluded and rightly so, in our opinion, that the road-side metal crash barriers are integral part of the road. The Tribunal also held that installation of such barriers was in the nature of a civil work. The iron and metal barriers would have to be installed with cement-concrete work. The installation of any such barrier would require laying of cement-concrete foundation. It was, therefore, held that installation of such barriers is basically in the nature of civil work of buildings which, in turn, is a part of construction of a road. Since the rate of duty of 2% is extendable to the constructions like buildings, bridges or roads, we see no reason to interfere - Decided against Revenue.
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