Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2024 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (3) TMI 229 - AT - Service TaxClassification of service - Works Contract Service or Industrial Construction Service - appellant undertook the works of water-proofing along with materials and the some portion of the service tax was collected by them from the service recipient - HELD THAT:- It is not in dispute that the appellant has taken the activity of water proofing along with materials. Therefore, the merits classification of the said activity is “Works Contract Service” as held by 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 High Court first correctly holds that in the case of composite works contracts, the service elements should be bifurcated, ascertained and then taxed. The finding that this has, in fact, been done by the Finance Act, 1994 Act is wholly incorrect as it ignores the second Gannon Dunkerley decision of this Court. Further, 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 - no demand is sustainable against the appellant under the category of “Industrial Construction Service” - the impugned demand is set aside. As no demand is sustainable against the appellant, therefore, the impugned order is set aside and the appeal is disposed of.
|