TMI Blog2019 (6) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... d as the work contract service and same will not be entitled for the classification as the service simplicitor - Considering the views of the Apex Court and of the fact that a new service under the category of work contract service was got enacted by the Finance Act since 1 June 2007, it is held that where both transfer of the property as well as the service component were involved in the respective contracts of the appellant, same are not taxable under the service tax simplicitor category and need to be classified under the work contract service and service tax need to be demanded accordingly. On the purchases which involved both transfer of the property in contract as well as the service component, the appellant was entitled to avail t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion from commercial or industrial construction service to work contract service since 1 June 2007. The basic allegation on the basis of which the demand of service tax has been raised in the show cause notice dated 19 May 2009 is that the appellant have wrongly paid service tax at the composition scheme under the work contract service for the work orders which were under progress before 1 June 2007. It has been the contention of the department that firstly the appellant should have paid service tax under commercial or industrial construction service for the projects which were under progress before 1 June 2007 and secondly that reduced rate of service tax under the composition scheme was not available to them because necessary declaration h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntracts executed by the appellant were composite contracts where the service component as well as the transfer of the property of the goods was involved in execution of the projects at hand and since the work contract service has been enacted for the levy of the service tax only since 1 June 2007 and, therefore, the comprehensive contract involving supply of material and service component will be classifiable as work contract service. It has further been contended by learned Advocate that since the service provided by them was a composite service involving transfer of property and service in the contracts and therefore same cannot be classified under service simplicitor under the category of commercial or industrial construction service or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pex Court in the case of Commissioner of Central Excise Customs, Kerala versus Larsen Toubro reported in 2015 (39) S.T.R. 913 (S.C.) that any contract which involves transfer of the property as well as service component same has to be classified as the work contract service and same will not be entitled for the classification as the service simplicitor. Considering the views of the Apex Court and of the fact that a new service under the category of work contract service was got enacted by the Finance Act since 1 June 2007, we hold that where both transfer of the property as well as the service component were involved in the respective contracts of the appellant, same are not taxable under the service tax simplicitor category and nee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commercial or industrial construction service or construction of complex service. We also hold that after 1 June 2007, the appellant are entitled to classify the service under the work contract service and are entitled to avail the composition scheme under work contract service for payment of service tax at the reduced rates. 5. In view of the above, we remand back the matter to the Adjudicating Authority to re-adjudicate the matter on following lines ; (i) the Adjudicating Authority should examine every contract which are subject matter of the present service tax demand to ascertain whether a contract is a composite indivisible work contract or not ; (ii) The indivisible composite work contract ..... X X X X Extracts X X X X X X X X Extracts X X X X
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