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2017 (10) TMI 452 - AT - Service TaxWorks contract service - recipients are municipal corporations and government bodies - appellant claims that they were not liable to tax as the projects executed by them are excluded in the definition of “works contract service” by Explanation (ii)(b) in section 65(105)(zzzza) of Finance Act, 1994 as the recipients are municipal corporations and government bodies - Held that: - much after the issue of the impugned order a finality on the nature and taxability of this much-litigated service has emerged with the decision of the Hon’ble Supreme Court in Commissioner of Service Tax v. Larsen & Toubro Ltd [2015 (8) TMI 749 - SUPREME COURT]. While clarifying that the taxability of ‘works contract service’ arises only after 1st June 2007, the decision also made it amply clear that the activities enumerated therein, to the extent originally listed as separate taxable services in section 65(105) of Finance Act, 1994, were ever intended to be taxed only on providing services simpliciter. Consequently, composite contracts are liable to be taxed only with effect from 1st June 2007 when ‘works contract services’ was legislated into Finance Act, 1994 by express incorporation of section 65(105)(zzzza). In order to ascertain whether the contention of the appellant that their contracts for sewage treatment plant/water treatment plants, would fall within the specifically described components of section 65(105)(zzzzd) of Finance Act, 1994, each of these will have to be scrutinized - appeal allowed by way of remand.
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