2016 (9) TMI 139 - AT - Service Tax

Classification - Erection, Commissioning or Installation Services - Management, Maintenance and Repair Services works contract services - tax under the category which were in existence before the introduction of Works Contract Services w.e.f. 01.06.2007 Held that - prior to the introduction of Works Contract w.e.f. 01.06.2007, the services cannot be taxed under the individual category, which were in existence prior to the said date. This has been decided in the case Larson & Toubro Ltd. Vs CCE 2015 (8) TMI 749 - SUPREME COURT matter remanded appeal disposed off decided in favor of appellant.

Summary

Issues:
Taxation under 'Erection, Commissioning or Installation Services' and 'Management, Maintenance and Repair Services' instead of 'Works Contract Services' post 01.06.2007.

Analysis:
The Appellants were taxed under 'Erection, Commissioning or Installation Services' and 'Management, Maintenance and Repair Services' for the period April 2005 to March 2010, despite claiming their services fell under 'Works Contract Services' from 01.06.2007 onwards. The Commissioner rejected their stand and taxed them under the previous categories, which were in place before the introduction of 'Works Contract Services' on 01.06.2007.

The legal position clarified by the Hon'ble Supreme Court in Larson & Toubro Ltd. Vs CCE mandates that services cannot be taxed under individual categories existing before the introduction of 'Works Contract' on 01.06.2007. Since this decision was not before the Commissioner while passing the impugned order, the Tribunal set aside the order and remanded the matter for fresh decision in light of the Supreme Court's judgment.

The Tribunal clarified that they did not delve into the merits of the case or the limitation aspect, leaving all issues open for the Commissioner to reassess. The Appellants were ensured an opportunity to present their case during the fresh adjudication. The stay petition and appeal were disposed of accordingly.