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2023 (8) TMI 317 - AT - Service TaxClassification of service - Works Contract Service or not - works awarded for supplying material and providing of service - contention of the appellant is that the service tax in the nature of works contract service came into effect from 01.06.2007 - HELD THAT:- The appellant is providing their services along with material which is not in dispute. They merit classification for the said services is ‘works contract service’ as held by the Hon’ble Apex Court in the case of COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT] and the appellant is liable to pay service tax on 33% of the gross value of the contract which appellant is paying. The revenue wants to collect service tax on remaining 67% of the value of contract which his not sustainable in the eyes of law. Accordingly, the said demand is set aside. With regard to the service rendered by the appellant to Government College, Port, SEZ, Hospital and Public Utility Service – Water Supply are fully exempt from the service tax as per Circular No.80/10/2004-ST dated 17.09.2004. Therefore, for those services, the appellant is not liable to pay service at all. In these circumstances, the appellant is not liable to pay service tax as proposed in the show cause notice. The impugned order is set aside and appeal is allowed.
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