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2016 (3) TMI 104 - AT - Service TaxDemand of service tax prior to 1.6.2007 - Works contract - Appellant providing services for design, manufacture, supply, installation, testing and commissioning of environmental control systems and tunnel ventilation system to DMRC - Held that: as per the decision of the Supreme Court in C.C.E. & Cus., Kerala vs. Larsen & Toubro Ltd. 2015 (8) TMI 749 - SUPREME COURT, composite works contracts involving rendition of services coupled with deemed supply of goods by accretion are not taxable services prior to 1.6.2007, either under commercial or industrial construction service, construction of complex service, or erection, commissioning or installation service. Works contract is defined and enumerated to be a taxable service with effect from 1.6.2007 by insertion of Section 65(105(zzzza) of the Finance Act, 1994.This service was defined as a service provided or to be provided to any person , by any other person in relation to the execution of a works contract, excluding works contract in respect of railways. However, since the works contract in respect of railways is excluded by the specific and unambiguous exclusionary clause in Section 65(105) (zzzza) of the Act, the reasoning and conclusion by the ld. Adjudicating authority that only works contracts pertaining to constructing of railway lines for railways is excluded is clearly erroneous and amounts to legislation rather than adjudication on a true , fair and good faith of interpretation of the provision. Therefore, as the appellant had provided an excluded species of works contract service to DMRC, service tax is not leviable. - Decided in favour of appellant
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