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2018 (11) TMI 1153 - AT - Service TaxLiability of Service Tax - Sub-contractor - Erection, Commissioning or Installation Services - Composite contract or not - demand prior to 01.06.2007 - Held that:- There is no clarity as to whether contracts are composite contracts. Though such contracts are for setting up of power projects and is most likely to be involving supply of materials as well as service element, this fact needs to be verified. The appellants have discharged service tax after 01.06.2007 under Works Contract Service. The demand of service tax under ECIS cannot sustain after 01.06.2007, if the contracts are of composite nature as laid down by the Tribunal in its decision in M/s. Real Value promoters [2018 (9) TMI 1149 - CESTAT CHENNAI] - In respect of the demand prior to 01.06.2007, the Hon’ble Apex court in the case of M/s. Larsen & Touboro [2015 (8) TMI 749 - SUPREME COURT] has held that the demand for Works Contract Service, which are composite in nature cannot sustain prior to 01.06.2007. This aspect also requires to be looked into. The appellants have produced certificate issue by M/s. BHEL to support their contention that service tax on the said activities has been discharged by M/s. BHEL, who are the main contractors. This aspect has not been considered by the authorities below. The matter requires to be remanded to the adjudicating authority, who is directed to look into the facts whether the contracts for the disputed period are composite contracts and whether the decision in the case of M/s. Real Value promoters and the decision in the case of M/s. Larsen & Touboro would apply - appeal allowed by way of remand.
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