TMI Blog2016 (11) TMI 700X X X X Extracts X X X X X X X X Extracts X X X X ..... ice into the tax net vide Section 65(105) (zzzza) of the Finance Act, 1994, notification 25/2007-ST dated 22-05-2007 had incorporated "services provided in relation to execution of a works contract', for exemption from service tax liability, in relation to construction of a port or other port services - the activities contracted and carried out by the appellant are very much in the nature of works contract services in relation to construction of port or other port - the said activities are fully exempted by service tax all through the period of dispute 'by virtue of series of exemption notifications - for period after 01-06-2007 the works contract services provided by appellant continue to be exempt from service tax liability in view of afo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have been confirmed in the impugned orders which have been appealed against. He submits that in the impugned orders the activity performed by appellant have been held to be in the nature of works contract services. This being the case by virtue of Supreme court judgment in the case of Larsen Toubro case 2015 (39) STR 913 (S.C), the works contract cannot be vivisected and subjected to tax prior to 01-06-2007. He further submitted that throughout the period of dispute services provided in relation to execution of works contract for construction of pod or other port was exempt from service tax, vide Notifications No. 16/2005-ST dated 07-06-2005, 25/2007-ST dated 22-05-2007, 38/2010-ST dated 28-06-2010, 11/2011-ST dated 01-03-2011, 25/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d written submissions on the same day. 7. In the written submissions dated 14-09-2016, it has been inter alia contended that considering the confirmed taxes and penalties in the case amounts to more than ₹ 309 crores , pre deposit of ₹ 10 crores ordered is very small. There is no apparent error in the impugned order. The arguments raised by appellant are part of appeal filed already, hence these should be considered by the Bench at the time of final hearing. The order passed by the Apex Court on the issue whether a composite contract can be vivisected or not, may have some impact on the overall demand , but by no stretch of imagination there is any ground for recalling the impugned order . Any reconsideration of impugned or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2015. We now proceed to analyse the issue under consideration in the appeals. 11. The appellant undertook work for Krishnapatnam Port Company Limited (KPCL) for construction of new bulk handling terminal system on an EPC contract dated 03-10-2005. The dispute has arisen on the nature of services provided by appellant to KPCL and their taxability or otherwise under service tax law. We note that the Tribunal in its interim order dated 28-07-2015 had observed that services are required to be assessed to tax under works contract after 01-06-2007 and that services in two show cause notices may not be strictly Port Services and if the same are held to be Works Contract Services, appellants would be entitled to exemption notification. In this r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. It is also seen that the nature of their work, in relation to construction of port or other port, are fully exempted from the whole of service tax leviable thereon right from 07-06-2005 till date, by a series of notifications. In fact it is interesting to note that after bringing Works Contract Service into the tax net vide Section 65(105) (zzzza) of the Finance Act, 1994, notification 25/2007-ST dated 22-05-2007 had incorporated services provided in relation to execution of a works contract' , for exemption from service tax liability, in relation to construction of a port or other port. 14. In the event we are able to reach the following inescapable conclusions: i. That the activities contracted and carried out by the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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