Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 1414 - AT - Service TaxClassification of services - Works contract service or Construction of commercial or industrial complex? - entire activity of construction took place during the financial year 2005-2006 - non-payment of service tax liability - demand of interest and penalty - HELD THAT:- On perusal of the concerned work order, we find that it involved both the supply of goods and material as well as element of service and labour. It is also a matter of record that the work order was awarded to the appellant on 21.6.2005 and same was to be completed within a period of four months. Thus, it is very clear that the activity undertaken by the appellant was prior to 01.06.2007 when the ‘Works Contract service’ came to be enacted by the Finance Act, 1994. So far as the classification of work under ‘Composite Work Contract’ is concerned, the matter is no longer res integra as it has been already decided by the Hon’ble Supreme Court in the case of COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT] where it has been laid down that in case any contract involve both transfer of property and goods along with element of service and labour, same will qualify to be classified as ‘Works Contract service’ and since ‘Work Contract service’ have came in existence from 01.06.2007 and the construction activity undertaken by the appellant was prior to 01.06.2007. The activity of the appellant qualifies to be classified as ‘Works Contract Service’ and since the ‘Works Contract service’ was not taxable prior to 01.06.2007, we do not find any merit in confirming the service tax demand against the appellant. Appeal allowed - decided in favor of appellant.
|