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2019 (6) TMI 840 - AT - Service TaxClassification of services - Appellant is engaged in providing and fixing of Diesel Generator Sets, Pumps to Government Departments - works contract services or Erection, Commissioning & Installation services? - benefit of abatement under the Notification dated 01 March, 2006 - HELD THAT:- The Supreme Court in COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT] examined as to whether ‘WC’ service can be classified under Section 65(105)(zzd) relating to ‘ECI’ service and held that the scope of Section 65(105) (zzd) is limited to cover contract of service simplicitor only and not composite works contract. The Supreme Court noticed that it is only w.e.f 01 June, 2007 that Section 65(105)(zzzza) was introduced to cover composite works contract and so works contract cannot be covered under any other category of services prior to 01 June, 2007. Thus, w.e.f. 01 June, 2007 composite contract covering supply of goods and service would be under the category of ‘WC’ service. It is, therefore, clear from the aforesaid judgment of the Supreme Court in Larsen & Toubro that a Composite Works Contract has to be taxed under ‘WC’ service and cannot be taxed under ‘ECI’ service under Section 65(105)(zzd). The position, therefore, that comes out is that the nature of services rendered by the Appellant was ‘WC’ service and not ‘ECI’ service. The show cause notice alleged that the Appellant was providing ‘ECI’ service and ‘MMR’ service. The demand was confirmed by the Adjudicating Authority under ‘ECI’ service and ‘MMR’ service, but the Commissioner (Appeals) has confirmed the demand only under ‘ECI’ service. The impugned order, therefore, deserves to be set aside for this reason alone since the demand made under a particular category of service found to be incorrect in a subsequent proceeding, cannot be sustained - Appeal allowed - decided in favor of appellant.
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