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2018 (10) TMI 403 - AT - Service TaxValuation - completion and finishing services/construction services - inclusion of materials consumed in the course of providing the service in assessable value - benefit of abatement under N/N. 1/2006-ST dated 1.3.2006 denied - it is alleged that the appellants bifurcated the value of purchase order into charges for materials and labour charges and they paid service tax only on the labour charges - demand of service tax on the value of materials under the category of commercial or industrial construction service (finished services) - demand under the head Works contract services - Scope of SCN. Demand for the period prior to 1.6.2007 - Held that:- The works contract has come into effect only after 1.6.2007 - The decision in the case of Larsen & Toubro Ltd. [2015 (8) TMI 749 - SUPREME COURT] would apply to the period prior to 1.6.2007 wherein it was held that levy under works contract service prior to 1.6.2007 cannot sustain - demand do not sustain. Demand for the period after 1.6.2007 - Held that:- It is seen that though the show cause notice raises the demand under commercial or industrial construction service, the Commissioner has confirmed the demand under works contract service. The Commissioner has thus travelled beyond the show cause notice and the demand after 1.6.2007, for this reason alone, cannot sustain - the confirmation of service tax being beyond the demand and allegations raised in the show cause notice, the same cannot sustain. The Tribunal in the case of Real Value Promoters and Ors. [2018 (9) TMI 1149 - CESTAT CHENNAI] had occasion to analyse the issue and has held that the demand under commercial or industrial construction service cannot sustain after 1.6.2007. Appeal allowed - decided in favor of appellant.
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