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2024 (3) TMI 181 - AT - Service TaxScope of SCN - no demand of service tax has been made under Works Contract Service from the appellants - Benefit of Notification No.1/2006-ST dated 01.03.2006 was not given to the appellant - want of evidence - HELD THAT:- In this case, it is not in dispute that the appellant is providing the services along with materials. Therefore, the appropriate classification of the services is under Works Contract Service and no demand of service tax is raised against the appellant under Works Contract Service. Therefore, following the decision of 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 the finding that Section 67 of the Finance Act, which speaks of “gross amount charged”, only speaks of the “gross amount charged” for service provided and not the gross amount of the works contract as a whole from which various deductions have to be made to arrive at the service element in the said contract. We find therefore that this judgment is wholly incorrect in its conclusion that the Finance Act, 1994 contains both the charge and machinery for levy and assessment of service tax on indivisible works contracts. The appropriate classification of the impugned service is under Works Contract Service and no demand of service tax has been made under Works Contract Service from the appellants under Works Contract Service. In that circumstances, the demand of service tax is not sustainable. Appeal allowed.
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