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2023 (2) TMI 1042 - AT - Service TaxLevy of Differential duty - Works Contract or not - case of the Department is that the appellant is carrying out services of Repair or Maintenance and Commercial or Industrial Construction Relating to Painting on Walls, Buildings, and Sheds etc. - only ground for denial of the payment of Service Tax under the works contract by the revenue is that the same is not covered under definition of works contract. HELD THAT:- The appellant admittedly carried out repairing/painting work in respect of plant, machinery, and building of their client. The service was provided along with the material used for painting work and the appellant also paid the VAT on the works contract. On reading of the definition of works contract, it is found that to cover the appellant’s activity under works contract it is not necessary that the said activity should be carried out only in respect of new building. As per clause (b) in addition to construction of a new building there is another category “Civil structure and part thereof” primarily for the purpose of commerce or industry. This category is a very vast category, which covers the plants machinery building. The appellant has carried out the painting work on this plant, machinery, building - a civil construction or a part thereof covers the plant machinery, building on which the appellant has carried out the painting work, the same is specified under clause (b) therefore, the painting work carried out on a civil structure or part thereof and also of a pipe line or conduit and undisputedly it is for the purpose of commerce or industry. The activity of the appellant is squarely covered under the definition of “works contract”. The appellant have correctly discharged the Service Tax under the head of works contract - Appeal allowed.
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