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2016 (10) TMI 621 - CESTAT NEW DELHI

2016 (10) TMI 621 - CESTAT NEW DELHI - TMI - Demand of service tax for the period 10.09.2004 to 24.03.2008 and also 1.4.2008 to 15.10.2011 - invocation of extended period of limitation - demand of interest and penalty 78 of the Finance Act, 1994 - classification of services - Commercial or Industrial Construction (CIC) Service falling under Section 65 (105) (zzq) or Works Contract Service falling under Section 65 (105) (zzzza) - Held that: - all the contracts are in the nature of works contracts .....

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ce and cannot be charged to Service Tax. Hence, the matter needs to be remanded back to the Commissioner for passing denovo orders. The demand up to 31.05.2007 does not survive. However, for the period from 01.06.2007, the lower authority directed to re-examine the issue by going through the relevant contracts and other documents in the light of the L & T case and pass revised orders. - For the period from 01.06.2007 - the first SCN was issued on 26.5.2009 invoking the extended period of li .....

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(JUDICIAL) and MR. V. PADMANABHAN, MEMBER (TECHNICAL) Appellant: Mr. J.K. MittaI, Advocate Respondent: Mr. Yogesh Agarwal, D.R. PER: V. PADMANABHAN These two appeals are directed against the Orders in Original dated 18.03.2010 and 30.12.2013 passed by Commissioner, Raipur. Since the issue is same, both the appeals are taken up together. The appellant is a Central Public Sector Enterprise engaged in providing services relating to construction of various industrial buildings, structures and civil .....

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Crores for the period 10.09.2004 to 24.03.2008. The SCN was issued invoking the extended period of limitation. Subsequently one more SCN was issued on 19.4.2012 covering the period 1.4.2008 to 15.10.2011 raising a demand of Service Tax to the tune of about ₹ 1.02 cr. This SCN was also issued invoking the extended period of limitation. In the impugned orders, Commissioner confirmed the demands of service tax made in the SCNs and also ordered payment of interest as well as penalty under Sect .....

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ract Service falling under Section 65 (105) (zzzza) of the Finance Act, 2007. However, the Commissioner decided against it and classified it under Section 65 (105) (zzq). 2. The appellant has challenged this order on many grounds including :- i) The show cause notice dated 26.5.09 covers the work done by the appellant for NT PC under four main contracts. All the four contracts were Composite contracts which involved supply of goods as well as rendering service. These contracts, which have been c .....

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service tax for the period prior to 01.06.2007 under any other categories such as Consequently, the entire demand prior to 01.06.2007 cannot survive. ii) This show cause notice has proposed demand of service tax under CIC. Commissioner has also confirmed the demand under this category, even for the period subsequent to 01.06.2007. In the light of the decision of the Apex Court in the L & T case (supra), the demand for the period after 01.06.2007 will also need to be set aside. iii) Alternati .....

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e extended period of limitation, it is not open to the Department to issue another SCN on the same issue in the light of the law laid down by the Apex Court in the case of Nizam Sugar vs CCE 2008 (9) STR (314) SC. 3. We have heard Shri J.K. Mittal, Advocate as well as Shri Yogesh Aggarwal, Id. DR. 4. The demands raised in this case is for the period 10.09.2004 to 24.03.2008 and also 1.4.2008 to 15.10.2011. It covers the period prior to 01.06.2007 when works contract service was not in the statut .....

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he charging Section 65(105) would refer only to service contracts simpliciter and not to composite works contracts. This is clear from the very language of Section 65(105) which defines "taxable service" as Many service provided 5. The Apex Court has laid down the law that all composite contracts which involved both supply of goods as well as service can be classified only under works contract service and the service tax liability on such contracts cannot be imposed under other categor .....

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r Project on works contract basis 4. For construction of Civil Works of Ash Dyke Package for Sipat Super Thermal Power Project on works contract basis. 5.1 We also note that the contracts covered by the second SCN are also of a similar nature. From the above, it is clear that all the contracts are in the nature of works contracts and in the light of the Apex Court decision, no demand of service tax can be upheld for such works for the period prior to 01.06.2007. For the period from 01.06.2007, w .....

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otice. Consequently, they have argued that even for the period subsequent to 01.06.2007, the Revenue does not have the option of re-assessing service tax under the works contract service. 6. We have very carefully examined the case records and considered the stand of the appellant. We find that we are faced with a peculiar set of facts. In the normal course what the appellant's argument that the services cannot be reassessed contrary to the SCN would have merited acceptance inasmuch as the A .....

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