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2017 (1) TMI 36 - AT - Service TaxComposite works contract - commercial construction, erection, commissioning or installation of plant machinery and equipment services in connection with construction of petrol pumps for oil companies - sale of goods in property and also rendering of service - Held that: - The Hon’ble Supreme Court in the case of Larsen & Toubro Ltd. [2015 (8) TMI 749 - SUPREME COURT] held that such contracts are liable to service tax only w.e.f. 01/06/2007 when a new tax entry under the category of works contract service was introduced for the first time in the Finance Act, 1994. Accordingly, we find that the service tax liability confirmed against the appellants for the period prior to 01/06/2007 is not legally sustainable. Eligibility of composition rate - Held that: - On fulfillment of the conditions laid down therein for availing the composition rate of tax, the tax liability of the appellants has to be re-worked and demanded. Non-filing of request for such composition scheme cannot be held as a reason for denial of such concession Time Bar - Held that: - It is seen that with the introduction works contract service as a separate tax entry w.e.f. 01/06/2007 though the tax liability on works contract was specified by name, even thereafter the dispute continued about vivisecting the contract for valuing tax purpose - invoking extended period for alleging fraud etc. is not legally sustainable. As such, the service tax liability under works contract service against the appellants shall be restricted to normal period as applicable under Section 73 of the Finance Act, 1994. On the same reasoning, penalties imposed on the appellants are also set aside in terms of Section 80 of the Finance Act, 1994. Appeal disposed off - decided partly in favor of appellant.
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