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TMI Blog2025 (3) TMI 1352X X X X Extracts X X X X X X X X Extracts X X X X ..... ling, flooring, painting, electrical work, civil work, layout of offices, etc. and was registered with the Department under Interior Decorator service since 29.01.2008. During the Audit verification it was revealed that the Appellant had rendered services since 2003 and had billed their customers in a consolidated manner for the materials and labour charges and had discharged service tax by claiming abatement of 67 % on the value of services billed and realized under Notification No.01/2006-ST dated 01.03.2006. Since it appeared to the Department that the Appellant was rendering Interior Decorator service from 2003 which was not eligible for availment of exemption under the said Notification, a Show Cause Notice was issued proposing to demand service tax and to impose penalties by invoking the extended period. The Adjudicating Authority confirmed the demand and imposed penalties under Section 77 & 78 of the Finance Act, 1994. Subsequently, the Appellant have obtained registration under 'Works Contract Service' w.e.f. 12.10.2009 and continued availing abatement for the period January 2009-September 2009 under the said Notification which was objected to by the department. Hence anoth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax on commercial construction service or for that matter on construction of residential complex service could only cover pure service simpliciter and when the contracts involved are composite ones involving both goods and services, no service tax could be imposed or demanded on the said contracts under CICS or CRCS. It was pointed out that the Apex Court has also invalidated the various notifications issued by the GOI including Notification No. 1/2006-ST which had provided for the abatement to the extent of 33% from the gross value whereby it was artificially attempted to identify the value of the service portion. This proposition holds good both prior to introduction of WCS and after and this proposition has been affirmed by the various Benches of the Hon'ble CESTAT including the Chennai Bench and some of the cases are listed hereunder. i. Real Value Promoters Pvt. Ltd. [Final Order Nos. 42436-42438/2018], dated 18.09.2018 by CESTAT, Chennai. ii. Voora Shreeram Construction Pvt. Ltd. [2020 (35) G.S.T.L. 574 (Tri.-Chennai)] iii. Ashwini Apartments [2019 (31) G.S.T.L. 476 (Tri.-Chennai)] iv. Ben Foundation [2019 (31) G.S.T.L. 434 (Tri.- Chennai)] Thus, it was averred that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor means any person engaged in the business of providing by way of advice, consultancy, technical assistance or in any other manner, services related to planning, design or beautification of spaces, whether man-made or otherwise and includes landscape designer. (ii) Commercial or Industrial construction' service : Introduced with effect from 10.09.2004, this service had within its ambit construction of a new building or a civil structure or a part thereof used for commercial or industrial purposes and repair, alteration, restoration activities of such buildings and civil structures. With effect from 16.06.2005, the above service was broadened to bring into its ambit: Completion and Finishing services such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services, in relation to building or civil structure. (iii) Works Contract service : Works contract service' with effect from 01.06.2007 in Section 65(105)(zzzza) of the Finance Act, 1994 means, "Any service provided or to be provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 sub-clauses are service contracts simpliciter without any other element in them, such as for example, a service contract which is a commissioning and installation, or erection, commissioning and installation contract. Further, under Section 67, as has been pointed out above, the value of a taxable service is the gross amount charged by the service provider for such service rendered by him. This would unmistakably show that what is referred to in the charging provision is the taxation of service contracts simpliciter and not composite works contracts, such as are contained on the facts of the present cases. It will also be noticed that no attempt to remove the non-service elements from the composite works contracts has been made by any of the aforesaid Sections by deducting from the gross value of the works contract the value of property in goods transferred ..... X X X X Extracts X X X X X X X X Extracts X X X X
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