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2019 (2) TMI 1494 - AT - Service TaxWorks contract - construction services - services provided to government projects either directly or as sub contractor - Demand of Service tax - Held that:- The Tribunal in the case of KHURANA ENGINEERING LTD. VERSUS COMMR. OF C. EX., AHMEDABAD [2010 (11) TMI 81 - CESTAT, AHMEDABAD], has held that works done by M/s. Nobletech Engineering (P) Ltd. to M/s. Kerala Water Authority and to M/s. Degremount Ltd. falling under the category of Commercial and Industrial Construction Service and Works Contracts Service are exempted from payment of Service Tax - demand cannot be upheld. Works contract - Services under the category of work contract services provided to M/s P K Thomas (Muscat Towers), Mr G Yohannan (Nandan Square) - Held that:- There is no dispute that the said services were provided during the period 2004-05 to 2006-07, i.e. prior to 01.03.2007 - Hon’ble Apex Court has in case of Larsen and Tubro [2015 (8) TMI 749 - SUPREME COURT] has held that said services became taxable from 1st June 2007 - demand cannot survive. Penalties - Held that:- For the demands upheld the contraventions of provisions of the Finance Act, 1994 leading to imposition of penalty under Section 76, 77 & 78 needs to be upheld - In case of benefit of payment of penalty and the rate of 25% was available to the appellant at the time when they had paid the Service Tax along with interest, the same benefit will continue in the present scenario - Penalties under Section 76 & 77 which relates to procedural contravention need to be upheld. Demand of interest - Held that:- For the service tax short paid, the demand for interest is upheld - For the re-quantification of the demand interest under Section 75 and penalties under Section 76, 77 & 78, the matter remanded back to adjudicating authority. Appeal disposed off.
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