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2023 (9) TMI 1192 - AT - Service TaxCommercial and Industrial Construction service - benefit of the composition scheme denied solely on the ground that all the ongoing projects entered into before June 2007, for which the composition scheme was not available with the introduction of works contract service effect from 01.06.2007, was not justified - Time Limitation - HELD THAT:- Admittedly, the appellant had undertaken construction of residential complex service on the strength of composite contracts entered into with its customers, which involved sale of goods i.e., construction materials, and also the service of construction. The Hon’ble Apex Court in the case of Larsen & Toubro Ltd. [2015 (8) TMI 749 - SUPREME COURT] has in clear terms held that wherever works contract service is undertaken prior to 01.06.2007, involving contracts of composite nature, no demand under CICS or CRCS could survive, prior to 01.06.2007. Service Tax, admittedly, is a tax on the service part and definitely not on the entire value declared / collected and hence, at the outset, we do not appreciate the demand of Service tax on the gross value declared in the S.T.-3 return, which is also done rejecting the appellant’s claim under works contract service, but not specifying as to under which service is the amount being charged to Service Tax. Time Limitation - HELD THAT:- Though the appellant has also taken a ground as regards the demands in both the above Show Cause Notices being hit by the period of limitation, since the demands cannot be sustained the issue of limitation not discussed here. Appeal allowed.
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