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2020 (4) TMI 105 - AT - Service TaxWorks Contract - contracts entered into with customers for manufacture of elevators that are then erected, commissioned and installed at the site - Denial of benefit of abatement - Jurisdiction - authority vested in officers designated under Finance Act, 1994 to alter the taxing entry for discharge of liability with intent to compel a particular mode of assessment peculiar to that entry - HELD THAT:- The law pertaining to taxability of ‘service’ component of composite ‘works contracts’ took a long time to attain finality. The decision of the Hon’ble Supreme Court in COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT] makes it abundantly clear that the authority vested in the Union to levy tax is limited to the ‘service’ component and only in accordance with the machinery provisions in Finance Act, 1994. Appellant has not, and still does not, for the composition scheme. To the extent that this continues to be option exercised by the appellant, the adjudicating authority is required to satisfy itself about the scope, and extent, of eligibility for notification no. 12/2003-ST dated 20 June 2003 and, in the event of recourse to the composite scheme by the appellant, for the duty to be computed accordingly. Adjuring the original authority to limit the adjudication, now ordered, to the normal period from the relevant date in relation to the first show cause notice and for the first three months of 2012-13 in the second notice and to comply strictly with the framework for taxation of ‘works contract service’ expounded by the Hon’ble Supreme Court in re Larsen & Toubro Ltd, the demand for these two periods set aside with the direction that the same be subject to fresh adjudication in which the appellants herein shall be entitled to make all their submissions - appeal disposed off.
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