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TMI Blog2025 (3) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... s Department (R&B). 2. Various show cause notices were issued to the appellant for different periods classifying their services under different categories like Management, Maintenance or Repair Service (MMRS), Supply of Tangible Goods (SoTG), erection and commissioning services, cleaning services, site formation services, GTA services, commercial and industrial construction services, port services etc. The details of show cause notices issued for different period are as under : Sl. No. Period of SCN SCN No. & Date Name of taxable service ST demanded in Rs. 1 16.06.05 to 31.03.2008 C.No: V/15/208/08- Adj dated 12.01.09 MMRS ST: 69,38,241 + Ed Cess: 1,38,765 + SHE Cess: 25,161 Total: 71,02,167/- 2 2008-09 C.No: V/15/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the demand to the extent of Rs. 70,91,301/- in relation to Repairs, Management or Maintenance of roads as indicated in Annexure-A to the impugned order. Similarly, in respect of MMRS provided to M/s Garison Engineer (NB), in view of the fact that he did not find it to be commercial building, the demand was confirmed to the extent of Rs. 5,81,028/-. 4. However, in respect of remaining demand, he has not accepted the contention of the appellant that they are in the nature of works contract in view of two facts. Firstly, he felt that the appellants have not produced any evidence to substantiate their claim that the works executed by them were leviable to VAT so that the condition as per definition of works contract is not satisfied. Secondl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Learned Advocate for the appellant is mainly contesting on two grounds. Firstly, she is submitting that if the entire contract is evaluated in its totality, it would be obvious that it is in the nature of works contract, as there are material portions where the rights in property in goods has already been transferred. Secondly, the fact that they have also paid VAT on said transaction would also substantiate the fact that the entire activities being performed were only in the nature of WCS. She has also pointed out that there are certain clauses in the contract which clearly brings out that steel and cement were to be procured by the appellant themselves. She is relying on the judgment of Larsen & Toubro to substantiate the claim that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port trusts and if so what was the nature of the material and whether the VAT has been paid in relation to using these materials in the execution of the contracts. Therefore, there is no clarity regarding the specific nature of work in relation to execution of contract for Port Trust. Thus, classification adopted by the Department and confirmed by the Adjudicating Authority is correct. In so far as classification based after the introduction of Port Services is concerned, since 65A will not be applicable, therefore even if it is in the nature of WCS, it will not get covered for the period beyond 01.07.2010 where the demand has been categorically made under the category of Port service. 8. Heard both the sides and perused the records. 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uilding or structure or residential complex. In the present case, as seen from the records, there is no evidence that the services provided by the assessees are related to new buildings or structures. Hence, they cannot be covered under works contract service, as claimed by the assessees. 46.4. In contrast, in the definition of MMR service, it covers management, maintenance or repair of 'property' whether immovable or not. The word 'property' has wider connotations and covers almost all tangible objects whether they are structures, buildings or conveyances. The nature of services provided by the assessee included repairs to channels, pavements, window shutters, verandahs, toilets, sinks, track repairs (of Port railway) etc. Hence, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such materials are not available. 12. Therefore, it is obvious that there is a need to re-examine the whole contracts in the light of certain developments post issuance of show cause notice to understand whether the nature of the transaction is in the nature of WCS or otherwise. It is obvious that as far as period beyond 01.07.2010 is concerned, any service provided within the port will be covered within a single definition of "port service" irrespective of classification under different service, either claimed by the appellant or by the Department. Similarly, there is also merit in the claim by the appellant that they have provided road services in relation to VPT also. They have also provided certain services in relation to railways wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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