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2017 (9) TMI 32 - AT - Service TaxSupply, erection and commissioning of lifts / elevators for residential and commercial buildings - Works contract service - Levy of service tax prior to 1.6.2007 - Held that: - In the case of Larsen & Toubro [2015 (8) TMI 749 - SUPREME COURT], the Hon’ble Apex Court as held that works contract prior to 1.6.2007 are not subject to levy of service tax - Following the principles laid down, the demand prior to 1.6.2007 is unsustainable and therefore requires to be set aside. A small portion of the demand pertains to 1.6.2007 to 31.7.2007 - Since the appellant has paid service tax on 15% of the contract value and has discharged VAT on the remaining portion, we are of the view that any differential service tax demand beyond that already discharged for the period 1.6.2007 to 31.7.2007 is unsustainable and requires to be set aside, which we hereby do. The demand of CENVAT credit to the tune of ₹ 2,51,202/- also is seen to have been utilized by the appellant for payment of service tax prior to March 2007, during which period works contract service was held not to be liable to service tax, demand set aside. Penalties - Held that: - The demands for differential tax liability / recovery of credit having been set aside, the penalties imposed will also not sustain. Appeal allowed - decided partly in favor of appellant.
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