TMI Blog2019 (6) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... August, 2006- January 2007. During this period the Works Contract Service was not liable to payment of Service tax as held by Hon ble Supreme Court in the case of COMMISSIONER, CENTRAL EXCISE CUSTOMS VERSUS M/S LARSEN TOUBRO LTD. AND OTHERS [ 2015 (8) TMI 749 - SUPREME COURT] . Demand not sustainable - appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 78 of 2011 - A/10961/2019 - Dated:- 3-6-2019 - MR. RAMESH NAIR, MEMBER (JUDICIAL) And MR. RAJU, MEMBER (TECHNICAL) For the Appellant: Ms. Jigar Shah, Adv For the Respondent: Shri T.K. Sikdar, Asst. Commr. (AR) ORDER RAMESH NAIR Brief facts of the case are that the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalties. The appellant preferred an appeal before Ld. Commissioner of Central Excise (Appeals), Rajkot on various grounds. The Ld. Commissioner (Appeals) upheld the demand of Service Tax as was confirmed by the Addl. Commissioner. Therefore, the present appeal. 2. Shri Jigar Shah, Ld. Counsel appearing on behalf of the appellant submits that both the lower authorities have confirmed that the activity carried out by the alleged service provider are in the nature of composite work i.e. Works Contract . It is settled that prior to 01.06.2007, service of Works Contract was not taxable as held by Hon ble Supreme Court in the case of Larson Toubro Ltd. 2015 (39) STR 913 (SC). He submits that the demand pertains to the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough the Show Cause Notice did not invoke the provision of section 66A of the Finance Act, 1994, the demand was confirmed on the appellant considering under reverse charge mechanism which is only possible if section 66A is invoked. He placed reliance on the following judgments: (1) Reliance Ports terminals 2016 (334) ELT 630 (Guj.) (2) Commissioner V Ballarpur Industries Ltd. 2007 (215) ELT 489 (S.C) (3) Commissioner Vs. Gas Authority of India Ltd. 2008 (232) ELT 7 (S.C.) He further submits that the entire value which was taken for demanding the Service Tax suffered the custom duty. Therefore, it is a case of import of machinery and no service is involved. On the entire value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oning and Installation Services, then the same is available as a CENVAT Credit to the appellant themselves as they are engaged in the manufacture of Excisable goods and discharging the excise duty. In this case, the entire exercise is of demand of Service Tax, payment thereof, availment of CENVAT Credit, utilization thereof payment of Excise duty, will amount to Revenue neutral. For this reason also, demand is not sustainable. In support of this submission, he placed reliance on the following judgments: (1) Jet Airways 2016 (44) STR 465 (Tri- Mum) (2) Jet Airways 2017 (7) GSTL J35(SC) He further submits that both the lower authorities have imposed penalties under section 76, 77 78. Penalty unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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