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2019 (7) TMI 827 - AT - Service TaxCommercial or industrial construction service (CICS) - construction of Sewage Treatment Plant (STP), Effluent Treatment Plant (ETP) and laying down of sewage pipelines for various customers including government bodies - HELD THAT:- Most of these are not for the commercial or industrial activities and, therefore, the same is not liable for service tax under the Finance Act. The appellant has submitted certificate from agencies involved in execution of these projects such as, Delhi Jal Board, Akashardham, Haryana Urban Development Authority, Hyderabad Urban Development Authority, U.P. Jal Nigam Board. These organisations are generally engaged in providing public services which are not in the nature of services for commerce or industry, of course, in some of the project there may be some element of commercial or industrial services as well. Further, a perusal of contract, which is also not disputed by the Revenue indicates that these are in the nature of ‘composite work contract’ which included supply of material along with the services. This issue has been decided by Hon’ble Supreme Court in case of COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT] judgement wherein it is held that the ‘composite work contract’ is not chargeable to service tax prior to 1.6.2007. It has also been held that if demand is not raised under the category of ‘work contract service’ for the period after 1.6.2007 the demand under any other services will not be sustainable. Appeal allowed - decided in favor of appellant.
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