2018 (4) TMI 1323 - AT - Service Tax

Works Contract - appellant has constructed City Centre in Tripura - Department has demanded service tax under the category of Commercial or Industrial Construction Services - Held that - the Hon ble Supreme Court in the case of Commr. of Central Excise & Customs, Kerala Vs. Larsen & Toubro Ltd. 2015 (8) TMI 749 - SUPREME COURT , has observed that prior to 2007, the service tax on works contract is not leviable. After that, the service tax is leviable. Matter remanded to the adjudicating authority to decide the issue afresh - appeal allowed by way of remand.

Summary

Issues Involved:
- Appeal against Order-in-Original regarding service tax on works contract for construction services.

Analysis:
The appellant filed an appeal against Order-in-Original No.72/ST/Commr./KOL/2012-13, which demanded service tax under the category of "Commercial or Industrial Construction Services" for constructing City Centre in Tripura. The appellant claimed to have performed works contract for the Government of Tripura. The Department also levied a penalty. Both parties agreed that prior to 2007, service tax on works contract was not leviable, but post-2007 it became leviable. The Tribunal, considering the Supreme Court's decision in the case of Commr. of Central Excise & Customs, Kerala Vs. Larsen & Toubro Ltd., set aside the impugned order and remanded the matter to the adjudicating authority for a fresh decision in light of the Supreme Court's ruling. The Tribunal emphasized providing a reasonable opportunity to the assessee and allowing admission of fresh evidence if necessary. Consequently, the appeal was allowed by way of remand, granting the appellant a chance for a fresh adjudication with proper consideration of legal principles and evidence.