TMI Blog2018 (11) TMI 1153X X X X Extracts X X X X X X X X Extracts X X X X ..... re of composite nature as laid down by the Tribunal in its decision in M/s. Real Value promoters [2018 (9) TMI 1149 - CESTAT CHENNAI] - In respect of the demand prior to 01.06.2007, the Hon’ble Apex court in the case of M/s. Larsen & Touboro [2015 (8) TMI 749 - SUPREME COURT] has held that the demand for Works Contract Service, which are composite in nature cannot sustain prior to 01.06.2007. This aspect also requires to be looked into. The appellants have produced certificate issue by M/s. BHEL to support their contention that service tax on the said activities has been discharged by M/s. BHEL, who are the main contractors. This aspect has not been considered by the authorities below. The matter requires to be remanded to the adjudic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioning or Installation Services for the period 2004-05 to 2007-08. After due process of law, the original authority confirmed demand of ₹ 46,45,246/- along with interest and imposed equal penalties. Aggrieved, the appellants are now before the Tribunal. 2. The learned counsel Shri S. Muthuvenkataraman and Ms. Cynduja Crishnan appeared and argued on behalf of the appellants. It was submitted that in certain cases, the appellants had provided services under specific contract, which was composite in nature involving supply of materials as well as service element. They had thus discharged service tax under Works Contract Services, which came into effect from 01.06.2007. Being composite services, the demand raised for the period pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. 2.2 Without prejudice, the appellants submit that the projects herein are for distribution and transmission of electricity and thereby the impugned services are exempted from payment of service tax in view of Notification No 45/2010 dated 26.02.2010. In this regard reliance is placed on the decision in CCE ST, Hyderabad Vs M/s. Sri Rajyalakshmi Cement Products reported in 2017 (52) STR 309 (Tri-Hyd.). 3. The learned Authorised Representative Shri B. Balamurugan supported the findings in the impugned order. He submitted that the main argument raised by the appellants at the time of hearing is that the contracts are composite in nature and, therefore, the demand under Erection, Commissioning and Installation Services cannot sus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are for setting up of power projects and is most likely to be involving supply of materials as well as service element, in our view, this fact needs to be verified. The appellants have discharged service tax after 01.06.2007 under Works Contract Service. The demand of service tax under ECIS cannot sustain after 01.06.2007, if the contracts are of composite nature as laid down by the Tribunal in its decision in M/s. Real Value promoters (supra). In respect of the demand prior to 01.06.2007, the Hon ble Apex court in the case of M/s. Larsen Touboro has held that the demand for Works Contract Service, which are composite in nature cannot sustain prior to 01.06.2007. This aspect also requires to be looked into. 6. The appellants have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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