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2018 (10) TMI 404 - AT - Service TaxConstruction services - Construction of residential complex services - Works Contract Service - Composite contracts or Pure Services - it was noticed that the appellant did not pay service tax on the entire construction activities and also that they have paid service tax under the works contract service on the taxable value realized from customers towards builders’ share of constructed area - period involved in the present case is from October 2004 to March 2009. Held that:- The contracts entered between the appellant and the service recipient is a composite contract which involves both supply of materials as well as rendering of service - The Tribunal in the case of Real Value Promoters Ltd. [2018 (9) TMI 1149 - CESTAT CHENNAI] had occasion to analyse the issue regarding demand of service tax under construction of residential complex services, commercial or industrial construction service and construction of complex service. The Tribunal has held that prior to 1.6.2007, levy of service tax can be under the above categories only for contracts which are purely for services. That after 1.6.2007, the above categories would be applicable only if the contracts are purely services and which are not composite contracts. Further, it was held that after 1.6.2007, demand in respect of composite contracts would fall under works contract service only - the demand of service tax under commercial or industrial construction service (residential complex) cannot sustain after the period 1.6.2007. The levy of service tax prior to 1.6.2007 cannot also sustain by application of the decision of the Hon’ble Supreme Court in the case of Larsen & Toubro Ltd.[2015 (8) TMI 749 - SUPREME COURT]. Appeal allowed - decided in favor of appellant.
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