2018 (1) TMI 1485 - HC - Service Tax

Levy of service tax - construction services involving works contract - period from 10.09.2004 - Held that - In the light of the decision of the Hon ble Supreme Court, in the case of Commissioner of C.EX. & CUS., Kerala Vs. Larsen & Toubro Ltd., 2015 (8) TMI 749 - SUPREME COURT , these Writ Petitions stand disposed of in terms of the said judgment, and it is open to the individual members of the Association to take appropriate stand, as and when, any action is taken by the Department, in terms of the observations made by the Hon ble Supreme Court - petition closed.

Summary

Issues:
1. Challenge to the collection of service tax on construction services under Section 65(105) (zzq) of the Finance Act, 1994.
2. Declaration regarding the levy of service tax on commercial or industrial construction services under Section 65 (30a) and Section 65 (25b) of the Finance Act, 1994.

Issue 1: Challenge to the collection of service tax on construction services under Section 65(105) (zzq) of the Finance Act, 1994

The petitioner filed a Writ Petition seeking a Writ of Prohibition to prevent the collection of service tax on construction services involving works contract from a specific date. The court considered the arguments presented by both parties, and in light of the Supreme Court's decision in the case of Commissioner of C.EX. & CUS., Kerala Vs. Larsen & Toubro Ltd., the Writ Petition was disposed of based on the said judgment. The court allowed individual members of the Association to take appropriate action when necessary, as per the observations made by the Supreme Court in the mentioned case. No costs were awarded, and the connected Miscellaneous Petitions were closed.

Issue 2: Declaration regarding the levy of service tax on commercial or industrial construction services under Section 65 (30a) and Section 65 (25b) of the Finance Act, 1994

Another Writ Petition was filed seeking a Writ of Declaration to declare the levy of service tax on commercial or industrial construction services as ultra vires Articles 14, 19(1)(g), and Article 265 of the Constitution of India concerning works contract carried out by the members of the petitioner's Association. The court, after considering the arguments put forth by the counsels, disposed of this Writ Petition as well in terms of the decision of the Supreme Court mentioned earlier. The judgment allowed for individual members of the Association to act accordingly in response to any actions taken by the Department, in line with the Supreme Court's observations. No costs were awarded in this matter, and the connected Miscellaneous Petitions were also closed as a result of this decision.

This comprehensive analysis of the judgment highlights the legal issues involved, the arguments presented, and the court's decision based on the applicable legal principles and precedents.