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2018 (6) TMI 799 - AT - Service TaxClassification of services - construction of residential houses and other related works - case of Revenue is that the activities provided by the appellant should be taxed under “construction of complex service” upto 31.05.2007 and under “works contract service” w.e.f. 1.6.2007 - Penalty - Held that:- The fact is not under dispute that the work order issued by the Rajasthan Housing Board for construction of Residential houses by the appellant is a composite contract, which involves both supply of materials and for construction of the houses. Thus, irrespective of the classification of the services, service tax will be leviable under Works Contract Service only w.e.f. 1.6.2007 - categorization of the service under “construction of complex service” in the adjudication order cannot be sustained. Time Limitation - Period from 1.6.2007 to 30.09.2010 - Held that:- There were confusion during the relevant time with regard to proper classification of the service. Since the Department has not specifically brought out any evidence showing the classification motive of the appellant, in defrauding the government revenue, the extended period of limitation cannot be invoked for confirmation of the adjudged demand and the demand should be confined to the normal period. Penalty - Held that:- Since the issue involves interpretation of statutory provisions, the penalty cannot be levied against the appellant. The matter is remanded to the Original Authority for quantification of the service tax demand, which should be payable by the appellant within normal period of limitation - appeal allowed by way of remand.
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