TMI Blog2023 (6) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... r raising demand of service tax. The issue has already been examined in detail by the Tribunal in the case of URC Construction (P) Ltd. [ 2017 (1) TMI 1363 - CESTAT CHENNAI ] has observed that In view of this specific decision and the admitted claim of the appellant that they are not providers of commercial or industrial construction service but of works contract service , no tax is liable on construction contracts executed prior to 1st June, 2007. Since the issue is no longer res-integra, the instant demand of service tax under the category of Commercial or Industrial Construction cannot be sustained and hence, set aside. Since the appeal is being decided on merits for the reasons stated above, we refrain from making any observation on the issue of limitation. Appeal allowed. - Service Tax Appeal No. 127 of 2011 Service Tax Appeal No. 158 of 2011 - FINAL ORDER NO. 75561 - 75562/2023 - Dated:- 6-6-2023 - HON BLE SHRI P. K. CHOUDHARY , MEMBER ( JUDICIAL ) And HON BLE SHRI K. ANPAZHAKAN , MEMBER ( TECHNICAL ) NONE for Appellant M/s. National Building Construction Corporation Ltd. Shri Biswajit Mukherjee , Advocate for Appellant M/s. Raitani Engineering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the local Govt. bodies, and hence, such activity would be considered for commercial purpose. The Ld.Commissioner rejected submissions made by both the Appellants that subject services, if at all taxable, would be liable to be taxed under the category of Works Contract Service which has not been proposed in the impugned Show Cause Notice. 4. Shri Biswajit Mukherjee, Ld.Advocate, appeared for M/s. Raitani Engineering Works Pvt.Ltd. whereas Shri J. Chattopadhyay Ld.Authorized Representative appeared for the Revenue. None appeared for NBCC. 5. The Ld. Advocate appearing for M/s. Raitani Engineering Works Pvt.Ltd. submitted that since the contract has been undertaken for construction of accommodation for Urban employed Youth and Women Vendors on behalf of the Ministry of Urban Employment Poverty Alleviation, Govt. of India, the same cannot be said to be for commercial purpose and, therefore, the classification under the category of Commercial or Industrial Construction is not correct. 5.1 He also submitted that since the scope of contract included supply of goods, the same cannot be classified under the above service category of Commercial or Industrial Construction but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has already been examined in detail by the Tribunal in the case of URC Construction (P) Ltd. (Supra)has observed as below:- 4. The primary contention of learned Counsel for the appellant is that the decision of the Hon ble Supreme Court in Commissioner of Central Excise and Customs, Kerala v. Larsen Toubro Ltd. [2015 (39) S.T.R. 913 (S.C.)] has settled the law to the effect that composite contracts involving services and goods covered under four categories, i.e., erection, commissioning and installation , construction of building for commerce and industry , construction of residential complex and turnkey projects , under Section 65(105)(zzzza) are liable to tax only with effect from 1st June, 2007. It is also contended that, at the adjudication stage, they had taken the plea that they being providers of works contract service were not liable to tax as providers of commercial or industrial construction service . This plea was not accepted by the adjudicating authority who proceeded to confirm the demand. Their further contention is that even though they are liable to tax with effect from 1st June, 2007 the show cause notice had not invoked the taxable entry renderin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, we have no hesitation in accepting the said contracts in dispute to be composite contracts for supply of both goods and services. 8. We note that the findings of the adjudicating authority do accept that supply of goods were involved in the contracts and that he was merely sceptical that VAT liability had been discharged on the goods supplied in the contract; whether VAT liability was discharged on the goods or not is irrelevant in the light of the decision of the Hon ble Supreme Court in re Larsen Toubro and Ors. We, therefore, have to merely determine the scope of taxability of works contract service rendered before and after 1st June, 2007 under the Finance Act, 1994. 9. The Hon ble Supreme Court in re Larsen Toubro Ors. has decided thus 24. A close look at the Finance Act, 1994 would show that the five taxable services referred to in the charging Section 65(105) would refer only to service contracts simpliciter and not to composite works contracts. This is clear from the very language of Section 65(105) which defines taxable service as any service provided . All the services referred to in the said subclauses are service contracts simplicit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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