TMI Blog2016 (10) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... the services post 1.6.2007, the appellant is ready to pay service tax on the composite contract value which ,is permissible under the work contract. Therefore, we direct the appellant to make payment of 2% plus other levy in terms of cess payable alongwith interest by the appellant within 30 days from today. On such payment the service tax liability alongwith interest shall be met out. - As the issue involved is interpretation, no penalty is imposable on the appellant. Decided partly in favor of assessee. - ST/986/2009-(DB) - Final Order No. 61204/2016 - Dated:- 11-8-2016 - Mr. Ashok Jindal, Member (Judicial) and Mr. B. Ravichandran, Member (Technical) Shri Jagmohan Bansal, Advocate for the appellant Shri Atul Handa, AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his submission that the services rendered post 1.6.2007, the appellant is ready to pay at the rate of 2% as service tax on the gross value of services provided by them under the work contract service. In that circumstance, the impugned order is to be modified to that extent. 4. On the other hand, learned AR reiterated the findings in the impugned order. 5. Heard the parties and considered the submissions. 6. The facts of the case are not in dispute. The appellant is providing services of construction with material and the amount and the material supplied cannot be vivisected. In that circumstance, the demand pertained to the period prior to 1.6.2007 in view of the decision of the Apex Court in the case of Larsen Toubro Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scheme and this scheme alone which complies with constitutional requirements in that it bifurcates a composite indivisible works contract and takes care to see that no element attributable to the property in goods transferred pursuant to such contract, enters into computation of service tax. 33. Section 13(3) of the Central Sales Tax Act says :- The State Government may make rules, not inconsistent with the provisions of this Act and the rules made under sub-section (1), to carry out the purposes of this Act. 34 . In the aforesaid judgment it was found that Section 9(2) of the Central Sales Tax Act conferred powers on officers of the various States to utilize the machinery provisions of the States sales tax statutes fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In a recent judgment by one of us, namely, Shabina Abraham Ors. v. Collector of Central Excise Customs, judgment dated 29th July, 2015, in Civil Appeal No. 5802 of 2005 = 2015 (322) E.L.T. 372 (S.C.), this Court held :- It is clear on a reading of the aforesaid paragraph that what revenue is asking us to do is to stretch the machinery provisions of the Central Excises and Salt Act, 1944 on the basis of surmises and conjectures. This we are afraid is not possible. Before leaving the judgment in Murarilal s case (supra), we wish to add that so far as partnership firms are concerned, the Income Tax Act contains a specific provision in Section 189(1) which introduces a fiction qua dissolved firms. It states that where a firm is diss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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