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2019 (6) TMI 685 - AT - Service TaxClassification of construction services - Works Contract Service or not - Composition scheme - benefit of the N/N. 32/2007 - HELD THAT:- It is a matter of record that the appellant discharged its Service Tax liability under reduced Service Tax rate by availing the benefit of Composition Scheme under ‘works contract service’ for payment of Service Tax. It is also a matter of record that the appellant gave intimation for availing the benefit of the Notification No. 32/2007 to the Department on 22.6.2007, much before filing its ST 3 return for the services undertaken by it during the relevant period. As per the Supreme Court judgment in the case of Commissioner of Central Excise & Cus, Kerala vs. Larsen and Toubro Ltd. [2015 (8) TMI 749 - SUPREME COURT], the activity involving labour and service charges as well as supply of goods and material will rightly be classifiable under the ‘Work Contract Service’ as the work contract service was introduced for levy of Service Tax with effect from 01.06.2007. The demand of Service Tax prior to a period 1.6.2007 is not legally not sustainable. From 1.6.2007 onwards the appellant has paid Service tax by availing the composition scheme for payment of Service Tax as per Notification No. 32 of 2007 dated 22.05.2007. by rightly classifying its activity under the ‘works contract service’. Appeal allowed - decided in favor of appellant.
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