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2023 (8) TMI 406 - AT - Service TaxDemand of service tax - erection, commissioning or installation service - transportation of goods service - benefit of N/N. 01/2006-ST denied - exclusion of cost of the goods as reflected under the profit and loss account from the total contract value to arrive at the taxable value - HELD THAT:- Both sides agree that all the contracts which the appellant assessee entered into were composite contracts which involved both supply of goods and rendering services. It has been held by the Supreme Court in COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT] that contracts involving both supply of goods and rendering services are “works contracts” which are a separate species of contract known to the trade distinct from the contracts of sale of goods or contracts for providing services. These contracts are chargeable to service tax only from 01.06.2007 under the head of “works contract service” under Section 65 (105) (zzzz) and not under any other head. It also needs to be noted that not all works contract are covered under this head but only certain types of contracts are covered. Therefore, the demand on composite works contracts under the head of erection, commissioning and installation service under Section 65 (105) (zzb) and on transportation of goods by service under Section 65 (105) (zzb) in the impugned order cannot be sustained. The impugned order is, accordingly, set aside - Appeal of assessee allowed.
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