TMI Blog2018 (2) TMI 1113X X X X Extracts X X X X X X X X Extracts X X X X ..... rsen & Toubro Ltd [2015 (8) TMI 749 - SUPREME COURT] has held that works contract services are not subject to levy of service tax prior to 1.6.2007 - Admittedly appellants are registered under the category of works contract services from 1.6.2007 and are discharging the service tax under this category. The demand is raised for the period from 10.9.2004 to 30.9.2007 under the category of ‘Construction of residential complex’ and ‘Commercial or Industrial Construction Services’. On perusal of the records, it shows that the appellant had undertaken the works on a turnkey project basis - it is seen that the construction services were completed prior to 1.6.2007. In such case, the decision laid in Larsen & Toubro judgement (supra) would squar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levy of service tax with effect from 9/2004. Short payment of service tax pertaining to GTA services was also noticed. A Show Cause Notice dt.5.3.2008 was issued proposing to demand service tax alongwith interest for the period 10.9.2004 to 30.9.2007. After due process of law, the Original Authority confirmed the demand alongwith interest and imposed penalty under section 78 of the Finance Act, 1994. Being aggrieved the appellants are now before the Tribunal. 2. On behalf of the appellant, the Ld.Counsel Shri V.S. Manoj submitted that the appellant is not contesting the demand pertaining to GTA services. The appellant was engaged in executing works contract and these contracts are subject to levy of VAT/Sales Tax and therefore being a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contract services which is accepted by department and therefore demand of service tax under the heads Commercial or Industrial Construction Services and construction of complex services is not sustainable. 3. The Ld.AR, Sh. K.Veerabhadra Reddy opposed the appeal. He submitted that the contracts are not composite contracts and therefore the decision laid in the case of Larsen Toubro Ltd relied by the appellant is not applicable. The activities undertaken by the appellant would fall under the category of construction of complex services and commercial or industrial construction services. This would go to show that the services rendered by the appellant did not fall under works contract services. The residential quarters constructed for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tracts in which the labour element and the goods element cannot be bifurcated. Admittedly appellants are registered under the category of works contract services from 1.6.2007 and are discharging the service tax under this category. The details of the amount confirmed (Rs.2,29,73,311/-) in the impugned order is shown in the table below. TOTAL SERVICE TAX PAYABLE BY ETA Category of Service Period (Amounts in Rs.) S.T. Ed.Cess Total Commercial or Industrial Construction Services 10.09.04 to 30.09.07 12466452 242134 12708586 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Larsen Toubro judgement (supra) would squarely apply to the demand raised prior to 1.6.2007 and requires to be set aside, which we hereby do. 7. The period involved is upto 30.9.2007. In the Show Cause Notice it is stated that the demand is based on receipt of service charges received till August 2007 in regard to Chennai City Centre Project; similarly in the case of construction of residential complex the demand is based on receipt of charges till September 2007. If the construction activities have been completed prior to 1.6.2007 and charges/consideration is received after 1.6.2007, the said amount received after 1.6.2007 would not be subject to levy of service tax as held by the Tribunal in the case of M/s.G.K.Shetty Buildings P ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
