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2017 (4) TMI 1177 - AT - Service TaxComposite works contract - The appellant carried out construction of external/internal works for electrical sub-stations and also laying overhead cables along with various other connected activities - Revenue entertained a view that the activities carried out by the appellant are liable to be taxed under the category of “Erection, Commissioning or Installation” services in terms of Section 65(39a) of FA, 1994 - Held that: - it is clear that these contracts are of composite nature involving both supply of materials as well as provisions of service. In such situation, these activities cannot be categorized as simple service contract to be subjected to service tax prior to 1.6.2007 - there is no liability for the appellant to pay service tax on these composite works contract prior to 1.6.2007. Extended period of limitation - Held that: - there is ground for the appellant to have bonafide belief regarding non-liability as to service tax - there is no ground for invoking demand for extended period - the penalties imposed on the appellant are to be held as non-sustainable. Jurisdiction - Held that: - The appellants are having registered office at Bhopal and they are registered with the Service Tax Department at Bhopal. They do have a branch office at Jhansi but were not registered in Jhansi. The contracts were executed in the name of registered office and work executed by the appellant. The Jhansi office dealt with the billing or other connected activities does not have impact of shifting of jurisdiction regarding the appellant’s liability as a party to the contract of service. The liability of the appellant to service tax shall be restricted to the normal period under Works Contract Service. The same shall be worked out by the jurisdictional officers based on the documents and the bills submitted by the appellant - appeal allowed by way of remand.
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