Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2023 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 1139 - AT - Service TaxClassification of services - commercial and industrial construction service or works contract service? - services provided to Bharat Heavy Electricals Limited (BHEL) for construction of Thermal Power Plant - HELD THAT:- The appellant is providing the said service along with material, in that circumstances, the appropriate classification of the activity undertaken by the appellant 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], wherein the Hon’ble Apex Court has observed that A close look at the Finance Act, 1994 would show that the five taxable services referred to in the charging Section 65(105) would refer only to service contracts simpliciter and not to composite works contracts. This is clear from the very language of Section 65(105) which defines "taxable service" as "any service provided". All the services referred to in the said sub-clauses are service contracts simpliciter without any other element in them, such as for example, a service contract which is a commissioning and installation, or erection, commissioning and installation contract. Thus, the appellant is not liable to pay service tax under commercial or industrial construction service. Therefore, demand of service tax of Rs.30,11,274/- is set aside. Levy of penalty - HELD THAT:- Penalty on the appellant is not imposable as they have paid the entire amount of service tax along with interest before issuance of show cause notice. Appeal allowed.
|