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2017 (11) TMI 1399 - AT - Service TaxWorks contract - Construction of Industrial or Commercial Complex Service - Held that - the period involved in the case is from 10.9.2004 to 31.3.2007 - the issue being a works contract whether subject to service tax prior to 1.6.2007 has been settled by the judgment of the Hon ble Supreme Court in the case of Commissioner Vs. Larsen & Toubro Ltd. 2015 (8) TMI 749 - SUPREME COURT where it was held that Works contract were not chargeable to service tax prior to 1.6.2007 - appeal allowed - decided in favor of appellant.
Issues: Service tax liability on construction of commercial projects prior to 1.6.2007.
The judgment by the Appellate Tribunal CESTAT Chennai involved a case where the appellants were engaged in construction of commercial projects in Chennai city and were registered under the category of 'Construction of Industrial or Commercial Complex Services'. The issue arose when it was discovered that the appellants were not discharging the service tax liability. A show cause notice was issued demanding service tax, interest, and penalty. The adjudicating authority confirmed the demand along with interest and imposed a penalty under section 78, leading to the appeal. Upon hearing both sides, the Tribunal noted that the period in question was from 10.9.2004 to 31.3.2007. The key issue revolved around whether a works contract was subject to service tax before 1.6.2007. The Tribunal referenced the judgment of the Hon'ble Supreme Court in the case of Commissioner Vs. Larsen & Toubro Ltd., which had settled this matter. Additionally, the Tribunal highlighted a similar case where the demand was set aside based on the Supreme Court's judgment on identical facts. Citing these precedents, the Tribunal concluded that the demand in the present case was unsustainable. In line with the precedents and legal principles established by the Supreme Court, the Tribunal set aside the impugned order and allowed the appeal with consequential relief if any. The operative portion of the order was pronounced in open court, bringing the matter to a close in favor of the appellant.
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