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2019 (11) TMI 676 - AT - Service TaxValuation - Commercial and Industrial Construction Service - benefit of N/N. 1/2006-ST (Abatement) - It appeared to Revenue that appellant have wrongly availed benefit of Notification No. 1/2006-ST (Abatement) and that they have undervalued the gross value of service. Revenue was of the view that appellant should pay service tax on the gross value (including the material components) - extended period of limitation. HELD THAT:- The admitted fact is that the contracts executed by the appellant, the copies of which were scrutinised by the Department, are composite, or to be performed alongwith supply of material. No separate cost of material to be supplied was shown. The invoices raised, also contained classification of the material as “sales-tax free”, “sales against D-Form” etc. Further in para 9 of the SCN, it is recorded that on scrutiny of the balance- sheet and profit and loss Account of the appellant for the period under dispute, it is revealed that Shri Raman Raina is the Proprietor of Cosmos Collection, is also Proprietor of M/s. Dream home during the Financial year 2005-06. Hon’ble Supreme Court have held in the case of Larsen & Toubro vs. Union of India [2015 (8) TMI 749 - SUPREME COURT] that prior to 1st June, 2007, in any contract which is composite in nature, wherein both supply of material and labour is involved, such contract cannot be chargeable to service tax prior to 1st June, 2007, when work contract was introduced, as a taxable head providing for segregation of the material and labour component, so as to tax the labour component under Service Tax - Accordingly, for the period 1st October, 2004 to 30th May, 2007, no service tax can be demanded from the appellant. Period 1st June, 2007 to 31st March, 2009 - Change of opinion - extended period of limitation - HELD THAT:- Under the fact and circumstances, there is no case made out of any fraud , suppression, or falsification of account or the returns on the part of the appellant. The show cause notice is primafacie, based on change of opinion on the part of the Revenue. For such change of opinion, extended period of limitation is not available. SCN is bad and not tenable - appeal allowed - decided in favor of appellant.
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