TMI Blog2018 (11) TMI 1226X X X X Extracts X X X X X X X X Extracts X X X X ..... ovision of service, this would be classifiable only under ‘Works Contract Service’ w.e.f. 01.06.2007. The Hon’ble Apex Court has further held that for the period prior to 01.06.2007, composite contracts cannot be vivisected and charged to service tax under other categories. From the documents produced, it is evident that the activities carried out are in the nature of ‘Works Contract’ and hence would be liable for service tax under Works Contract Service w.e.f. 01.06.2007 only and not for the prior period. Demand in respect of M/s. RMC - period of demand made is up to 31.03.2007 - Held that:- The various works contracts executed by M/s. RMC will need to be scrutinized and verified before concluding that no service tax liability surviv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contracts entered into with various Telecom Companies, both the above assessees were required to supply, fabricate, galvanise and erect the cellular towers at various sites specified by the customers. Investigations were carried out by the DGCEI into the affairs of both the assessees and other group companies. After conclusion of investigation, show cause notices were issued demanding payment of service tax for the period 01.07.2003 to 31.03.2007 in respect of M/s. RMC and for the period 01.07.2003 to 31.03.2006 in respect of M/s. KLM. The activities carried out by the assessees were proposed to be classified under the category of Erection, Commissioning or Installation service falling under Section 65(39a) read with Section 65(29) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Works Contract Service since these contracts involved not only supply of goods bit also carrying out erection of the towers at the site and hence classifiable only under Works Contract Service which has been included in the Statute under Section 65(105)(zzzza) of the Finance Act w.e.f. 01.06.2007. It has been argued by M/s. RMC that even otherwise, under the classification of Erection, Commissioning or Installation no service tax can be demanded upto 01.05.2006, since the towers after erection, became immovable property. 4. In respect of M/s. KLM, the revenue has challenged the dropping of service tax. The adjudicating authority has taken the view that under the category of Erection, Commissioning or Installation service, no serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 01.06.2007, composite contracts cannot be vivisected and charged to service tax under other categories. The plea of the assessee in both cases is that the activities carried out by both M/s. RMC as well as M/s. KLM are in the nature of Works Contracts . Ld. Advocate has also submitted copies of Certificate of Deduction from Payment of Execution of Works Contract. This has been issued under Section 38(3) of the West Bengal Sales Tax Act, 1994. We have perused such certificates which give the indication that the activities carried out are considered as Works Contracts under the West Bengal Sales Tax Act Rules. We also note that a few more certificates are part of the appeal paper book for different periods. From these documents it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l filed by the Revenue in M/s. KLM, the adjudicating authority has dropped the demand for service tax under the category of Erection, Commissioning or Installation service. In the grounds of appeal, revenue has submitted that the transmission towers are in the nature of equipments which were included under the category of Commission or Installation service even for the period prior to 01.05.2006. But we find that the nature of activities, as discussed above, is in the form of Works Contract Service, since it involves the supply of the transmission tower materials alongwith erection of the same. Consequently, even in respect of M/s. KLM, the decision of the Hon ble Supreme Court in the case of Larsen Toubro Ltd. (supra) will be equally a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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