TMI Blog2019 (2) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... mand falls after 01.06.2007 - Construction of Complex Service - Held that:- The Tribunal in the case of M/s. Real Value Promoters Pvt Ltd., [2018 (9) TMI 1149 - CESTAT CHENNAI] had discussed in detail the leviability of service tax on composite contracts under the category of CCS/CICS/ECIS for the period after 01.06.2007. The Tribunal therein had observed that after 01.06.2007, the demand for such composite contracts can attract the levy of service tax under the category of Works Contract Services only - demand do not sustain. The demand prior to 01.06.2007 or after cannot sustain - appeal allowed - decided in favor of appellant. - ST/00062/2012 - FINAL ORDER NO. 42792/2018 - Dated:- 31-10-2018 - Smt. Sulekha Beevi C.S, Judicial Membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST, dated 01.03.2006. He argued that the composite contracts, which involved both supply of materials and services are not leviable to service tax prior to 01.06.2007 as held by the Hon'ble Apex Court in the case of Commissioner of Central Excise Customs, Kerala Vs M/s. Larsen Touboro Ltd, reported in 2015 (39) S.T.R.913 (S.C.) is applicable to the facts of the present case and the demand prior to 01.06.2007 cannot sustain. That the demand after 01.06.2007 can also not sustain for the reason that the Tribunal in the case of M/s. Real Value Promoters Pvt Ltd., vide Final Order No.42436-42438/2018, dated 18.09.2018 have held that the demand for service tax in composite contracts would be sustainable only under Works Contract Services. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Central Excise Vs. Larsen Toubro Ltd. reported in 2015 (39) STR 390 (SC). The Hon'ble Apex Court held that the taxable services of 'consulting engineer' under section 65(105)(g) of the Finance Act; erection, 'commission and installation services' under section 65(105)(zzd) of the said Act; 'technical testing and analysis' under section 65(105)(zzh) ibid; 'construction services' under section 65(105)(zzq); construction of complex services under section 65(105)(zzzh) would refer only to service contracts simpliciter and not to composite works contracts; that these five taxable services only would qualify without any other element. The Hon'ble Supreme Court also observed that with introducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the work performed by the appellant is in the nature of composite works contract only. Based on the Hon'ble Apex Court judgment in Larsen Toubro, such composite works contract then will not be liable to service tax levy prior to 1.6.2007. On the same ratio, such composite contracts even for the period after 1.6.2007 disputed in these appeals will still have to be held as composite works contract only and not pure service simpliciter contracts that could be classified under commercial or industrial construction service, or construction of complex service. To put in another way, to merit being classified as CICS or CCS, the service provider concerned will be rendering only service simpliciter without any other element in them namely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Apex Court in Larsen Toubro case (supra) and held that there can be no levy of service tax on composite contracts (involving both service and supply of goods) prior to 1.6.2007. This read together with the budget speech as above would lead to the strong conclusion that composite contracts were brought within the ambit of levy of service tax only with the effect from 1.6.2007 by introduction of Section 65(105)(zzzza) i.e. Works Contract Service. As pointed out by the ld. counsels for appellants, there is no change in the definition of CICS/CCS/RCS after 1.6.2007. Therefore only those contracts which were service simpliciter (not involving supply of goods) would be subject to levy of service tax under CICS/CCS/RCS prior to 1.6.2007 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance Act, 1994, it would be the appropriate classification for the part of the service provided after that date. Thus, for example, while construction of a new residential complex as a service simpliciter would find a place under section 65(105)(30b) of the Act, the same activity as a composite works contract will require to be brought under section 65(105)(zzzza) Explanation (c). For both these categories for the definition of residential complex, the definition given in section 65(105)(91a) will have to be adopted as discussed above will have to be taken into account. In the light of the discussions, findings and conclusions above and in particular, relying on the ratios of the case laws cited supra, we hold as under: - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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