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2017 (1) TMI 1079 - AT - Service TaxWorks contract service - Benefit of abatement under N/N. 15/2004-ST dated 10.09.2004 and N/N. 01/2006-ST dated 01.03.2006 - denial on the ground that upon initiation of enquiry proceedings, since the appellant had discharged the service tax liability on the value of free supply material, the case of the appellant falls outside the scope and purview of the above notifications for claiming such abatement - Held that: - The Hon’ble Supreme Court in the case of Larson and Turbo Ltd. [2015 (8) TMI 749 - SUPREME COURT] have 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, 1944 - the service tax liability confirmed by the Department against the appellant for the period 01.06.2007 is not legally sustainable. Extended period of limitation - the period of dispute involved in this case is from 16.06.2005 to 30.09.2007 and the SCN was issued by the Department on 02.09.2009, which is beyond the period of one year from the relevant date - Held that: - The issue regarding service tax liability on composite works contract was highly contentious and there were divergent views by different judicial forums - In such circumstances, invoking extended period of limitation for alleging fraud, suppression etc. is not legally sustainable. Therefore, the service tax demand is not sustainable even after the period 01.06.2007. Demand set aside - appeal allowed - decided in favor of appellant.
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