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2016 (9) TMI 376 - AT - Service TaxInvokation of extended period of limitation - Demand alongwith interest and penalties - denial of benefit of Notification No. 1/2006 which allowed abatement of 67% - Completion and finishing services of civil structure - period involved is March, 2006 to September, 2007 - availed cenvat credit and have also received free supplied items from their clients - Held that:- in terms of Sl.No.7 of notification, abatement benefit is not available to the ‘completion and finishing services’. However, we note that appellant had taken categorical stand before the lower authorities that work was being done by them under work contract and also filed an affidavit to the effect that no free supplied items were being received by them from their client. We find that in terms of the latest decision of the Hon’ble Supreme Court in the case of CCE, Kerala vs. Larsen & Toubro Ltd. [2015 (8) TMI 749 - SUPREME COURT], the work contract were not liable to service tax prior to 1.6.2007. As such, it requires to be examined as to whether the appellants activities of providing ‘completion and finishing services’ would fall under the category of works contract or not. If the services were being provided under a work contract, then no liability to service tax would arise for the period prior to 1.6.2007. If there was no service tax liability, even though, the appellant had discharged Service tax on 33% of the value of services, the demand for differential duty cannot be confirmed on the said ground. Therefore, the impugned order is set aside and matter is remanded back to the adjudicating authority for examining the applicability of Supreme Court decision in the case of Larsen & Toubro Ltd. (supra) and to decide the demand issue accordingly. We keep the issue of limitation open for the adjudicating authority to re-decide in the light of appellants submissions that they were filing regular returns and were discharging the service tax liability. As such, there was no malafide or suppression on their part so as to invoke the extended period of limitation. - Matter remanded back
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