9911796707
TMI Blog2019 (2) TMI 771X X X X Extracts X X X X X X X X Extracts X X X X ..... account of the inputs used (on which they paid VAT) while rendering services from the value of taxable services rendered. Consequently, whether any differential tax is recoverable and whether any penalties are imposable upon the appellant under Sec.78. The appellant is engaged in maintenance and repair activity for M/s Shipping Corporation of India Ltd. They were paying duty under 'maintenance and repair services'. Comparison of the accounts maintained by the assessee with the values declared in their ST-3 returns by the department showed that the assessee had not paid service tax on the gross value received for the services provided by them. They were discharging service tax liability only on about 25% of the amounts which they received fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ets were compared with their ST-3 returns, the balance sheets reflected the entire amounts received by them from their clients including the goods component thereof. Therefore, the amounts were much larger than the value of the services rendered by them. He submits that since they have issued invoices indicating separately the value of goods (on which they paid VAT) and the value of services (on which they paid service tax) there was no need for them to claim the benefit of abatement because the invoice itself was split into two parts. 4. Notwithstanding the above arguments, he asserts that their case is squarely covered by the judgment of the Hon'ble Apex Court in the case of L & T Ltd [2015 (39) STR 913 (SC)] in which it has been held th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire escape staircases or elevators; or b) construction of a new building or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry; or c) construction of a new residential complex or a part thereof; or d) completion and finishing services, repair, alteration, renovation or restoration of, or similar services, in relation to (b) and (c); or e) turnkey projects including engineering, procurement and construction or commissioning (EPC) projects" 5. It did not include maintenance and repair services. Therefore, they were not covered by the works contract service definition post 01.06.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature of contracts is composite contract, which, as per the judgment of the Hon'ble Apex Court in the case of L & T Ltd (supra), became chargeable to service tax only from 01.06.2007. We also find force in the argument of the appellant that after 01.06.2007, the definition of works contract did not encompass all services and specifically it did not include maintenance and repair services. Therefore, no service tax was chargeable from the appellant at all. In other words, no service tax can be charged prior to the introduction of negative list of the services on maintenance and repair activity involving both the service and the sale/ deemed transfer of property of the goods/ components. Even otherwise, when their invoices clearly indicated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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