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2019 (3) TMI 38 - AT - Service TaxClassification of services - Construction services - activity of construction of foundation roads etc. - composite services - Held that:- The activity of construction of foundation roads etc., are in the nature for Composite Service in which the appellant was required to supply the materials to be used in the construction activity. Such composite service is to be classified only under the Work Contract Service introduced with effect from 1/06/2007, in view of the decision of the Hon’ble Supreme Court in case of Larsen and Turbo [2015 (8) TMI 749 - SUPREME COURT]. By following the decision of the Apex Court, the demand for service tax for the period upto 31/05/2007 is set aside. For period commencing on 1/06/2007, the composite services would be liable for classification under Works Contract Service only - But we note the SCN has proposed the demand for service tax under the category of Commercial and Industrial Construction Service as well as Repair and Maintenance Service. Hence the confirmation of demand under the category of WCS will not be proper particularly in view of the decision of the Tribunal in case of Ashish Ramesh Dasarwar [2017 (9) TMI 1001 - CESTAT MUMBAI] wherein Tribunal has taken the view that demand for Service Tax is to be set aside if the Show Cause Notice proposed a classification different from WCS for construction activity - the demand for service tax made under the (CICS) category for Construction of foundation/ roads as well as repair of roads set aside. Activity of laying pipes supplied by the customers - Commercial or Industrial Construction Service or not? - Held that:- To take a final view in respect of liability of service tax for the activity of laying of pipelines, the relevant contracts executed are required to be verified. For such purpose, the demand is set aside and the matter remanded to the Adjudicating Authority to take a de Novo decision only on this activity. Appeal allowed in part and part matter on remand.
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