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2024 (4) TMI 67 - AT - Service TaxClassification of service - Commercial or Industrial Construction Service (CICS) or Works Contract Service (WCS) - completion and finishing services - suppression of facts or not - Extended period of limitation - HELD THAT:- It is observed that in the present matter appellant claimed that service tax under works contracts came into effect w.e.f. 01.06.2007 and accordingly appellant paid service tax on gross amount of contracts under the category of ‘works contract’ and duly reflected the same in ST-3 returns. Appellant paid the tax and filed ST-3 returns under the category of Works Contracts. The provisions of work contract composition scheme as well as Rule 2A of Service Tax Valuation Rules are specifically made applicable to the works contract service, subject to fulfilment of various conditions so that the tax liability can be restricted only to the service portion of the contract. Admittedly, no service tax can be levied on sale of goods or transfer of goods in property. In fact, the Hon’ble Supreme Court in the case of COMMISSIONER, CENTRAL EXCISE & CUSTOMS VERSUS M/S LARSEN & TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT] held that prior to 1-6-2007 there is no machinery provisions for levy and assessment of service tax on indivisible works contract. The provisions of work contract composition scheme as well as Rule 2A of Service Tax Valuation Rules are specifically made applicable to the works contract service, subject to fulfilment of various conditions so that the tax liability can be restricted only to the service portion of the contract. Admittedly, no service tax can be levied on sale of goods or transfer of goods in property. In fact, the Hon’ble Supreme Court in the case of Larsen & Toubro Ltd. held that prior to 1-6-2007 there is no machinery provisions for levy and assessment of service tax on indivisible works contract. The eligibility of the appellant either for the composition or for valuation under Rule 2A of the Valuation Rules are to be examined afresh by the Ld. Adjudicating Authority - it is also found that the entire amount has been confirmed without indicating the breakup of the amount attributable to the goods and services rendered by the appellant in the present matter. The impugned order is set aside - matter is remanded to the Ld. Adjudicating authority that to ascertain if VAT /Sales Tax has been paid for all the contracts under the category of works contract. If the appellant has paid VAT/Sales Tax under the head of Works Contract then Service would fall under the category of Works Contract Services. The appeal is allowed by way of remand to the Adjudicating Authority.
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