2017 (12) TMI 386

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..... be provided is to be taxed at the time of receipt itself. The appellants, though claimed to have discharged the service tax later, subject to verification of the same, the liability for the interest on the late payment will arise - matter on remand. Rendering of construction service as sub-contractor - non-payment of service tax on the belief that main contractor already paid the service tax o .....

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..... are engaged in the construction activities. The proceedings were initiated against them to demand and recover service tax under the category of Commercial or Industrial Construction Service for the period 2006-07 to 2010-2011. Two issues were raised for consideration. Firstly, the appellant did not discharge service tax on the consideration received on mobilization advance. Secondly, the appella .....

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..... urther, he also submitted that the lower authority did not examine the correct classification of the tax liability as the work executed by the appellant are all composite in nature, involving the provision of service as well as supply of goods. Relying on the decision of the Hon ble Supreme Court in the case of Larsen Toubro Ltd. - 2015 (39) STR 913 (SC), the ld. Counsel submitted that there .....

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..... posite in nature should be examined with the legal principles laid down by the Hon ble Supreme Court in Larsen Toubro Ltd. (supra). In case, the work executed by the appellants were all found to be rightly classifiable as work contract service, no tax liability will arise for the period prior to 1.6.2007. This aspect requires verification with connected documents. The mobilization advance is .....

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..... cted issues are required to be examined afresh after correct classification of the tax liability. 7. In view of the above discussion and analysis, we find it fit to set aside the impugned order and remand the matter to the Original Authority for a fresh decision. Adequate opportunity shall be provided to the appellant to submit their side of the case while deciding the matter. The appeals are a .....

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