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2015 (12) TMI 1360 - AT - Service TaxDemand of service tax - works contract - Erection, Commissioning and Installation Services; Site formation Services and GTA Services - Held that:- As regards the service tax liability on the Erection Commissioning and Installation Services for MKVDC; the contract/work order is nothing but a works contract. Law has been settled by the Supreme Court in the case of CCE Vs. Larsen & Toubro Ltd. and others [2015 (8) TMI 749 SC] - As regards the service tax liability under the category of Site Formation Services, Larger bench has settled the law as to laying of pipes /conduits for lift irrigation system undertaken for government/government undertakings and involving associated activities like soil preparation and filling, supporting masonry services gets classified as works contract, and is exempted from the service tax liability by the exempted granted in definition of Works Contract Services under section 65(105) (zzza) of the Finance Act, 1994. GTA Service - Appellant is not seriously contesting the tax liability and has already discharged the tax liability and interest and the prayer is only for setting aside the penalties. We find that the appellant had discharged the tax under the head GTA services before the issuance of show cause notice and has also paid the interest due. In our view, the issue of taxability under GTA services is one of interpretation, hence appellant could have entertained a belief that the services are taxable in the hands of the transporters. Accordingly, we are on the view that the penalties imposed on the appellants on this count needs to be set aside - Decided partly in favour of assessee.
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