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2017 (10) TMI 1613 - AT - Service TaxEligibility for abatement under Notification No. 15/2004-ST dated 10/09/2004 and No. 1/2006-ST dated 01/03/2006 - civil as well as interior fit out work - demand of the service tax on the ground that value of free supply items is includable in the gross value for the purpose of abatement - HELD THAT:- The activities undertaken by the appellant involves both supply of material as well as provision of labour. The appellant had raised the invoice on its contractees showing payment of VAT and such VAT payment particulars were duly reflected in the periodic VAT returns filed before the Jurisdictional VAT authorities. Since the activities undertaken by the appellant is composite in nature, involving both supply of materials as well as execution of assigned tasks, the said services should fall under the purview of Works Contract Service and will not be excisable to service tax prior to 01/06/2007 as per the judgment of Hon’ble Supreme Court in the case of COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT]. Even for the period from 01/06/2007, the said service will not be subject to levy of service tax under CICS, since admittedly the activities undertaken falls under the Works Contract Service - Tribunal in the case of M/S. URC CONSTRUCTION (P) LTD. VERSUS COMMISSIONER OF CENTRAL, SALEM [2017 (1) TMI 1363 - CESTAT CHENNAI] has set aside the demand for the period from 01/06/2007 on the ground that composite nature of service should not be classified under CICS service. Appeal allowed - decided in favor of appellant.
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