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2023 (7) TMI 58 - AT - Service TaxLevy of Service Tax - Work Contract Service - contracts executed involving both supply of goods and services - period 01.04.2005 to 31.03.2007 - HELD THAT:- The Appellant has executed the construction work of (i) Garment Park for West Bengal Industrial Development Corporation Ltd, (ii) Malda Food Park for West Bengal Processing and Horticulture Development Corporation and (iii) Ash Handling System for DC Industrial Plant Services Ltd., during the period 01.04.2005 to 31.03.2007. It is observed that Work Contract Service was liable to service tax only w.e.f. 01.06.2007. Prior to this date no service tax was liable to be paid on Work Contract service - the issue has already settled by the Hon’ble Supreme Court in the case of COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT] - In this judgment, the Hon’ble Supreme Court has categorically held that ‘Work Contract Services’ involving both supply of goods and service , were liable to service tax only w.e.f.01.06.2007. Prior to 01.06.2207, such services cannot be charged to service tax under any other category of taxable service, namely ‘Commercial or Industrial Construction Service. As the demand involved in the impugned order pertains to the period prior to 01.07.2016, the demand of service tax confirmed under the category of ‘Commercial and Industrial Construction Service is not sustainable - demand set aside. Appeal allowed.
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