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2015 (2) TMI 708 - AT - Service TaxWaiver of pre-deposit - Works Contract Service - demand of service tax from principal contractor whereas work was executed by the sub-contractor under the 'back to back basis' agreements - Held that:- Reliance for this contention is placed on the decision of the Supreme Court in Larsen & Tourbo Ltd. & Ors [2008 (8) TMI 21 - SUPREME COURT]. The Supreme Court clarified that in a construction works contract, the property used in the construction of a building/project passes from the builder to the owner of the land on which the building is constructed when the goods or materials used are incorporated in the building and that is so, even if there is no privity of contract between the contractee and the sub-contractor, since the deemed transfer of property in goods is based on the principle of accretion of property in goods. On the basis of the law declared by Hon'ble Supreme Court supra, it prima facie appears that no 'works contract service' was provided by the appellant to the Government of Andhra Pradesh since it was the sub-contractors who transferred the property in goods to the State Government by the process accretion of such goods into the property of State Government, during execution of works contract by the sub-contractors. - stay granted.
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