2018 (5) TMI 313 - AT - Service Tax

Commercial construction service - non-payment of service tax - Held that - the appellant had claimed that the services rendered by them are works contract service . It is difficult to accept the appellant s claim at this stage and apply the principles laid down by the Hon ble Apex Court in the case of Larsen & Toubro Ltd. 2015 (8) TMI 749 - SUPREME COURT . It is prudent to remand the matter to the adjudicating authority to ascertain as to whether the appellant s claim is right or otherwise - appeal allowed by way of remand.

Summary

Issues:
Appeal against Order-in-Appeal, Allegation of non-payment of Service Tax, Classification of service as 'commercial construction service' or 'works contract service', Applicability of principles laid down by the Supreme Court in a specific case

Analysis:
The case involved an appeal against Order-in-Appeal No. 16/2009 passed by the Commissioner (Appeals) Central Excise & Service Tax, Ahmedabad, regarding the non-payment of Service Tax by the appellant for providing commercial construction services to specific entities during a certain period. The appellant contended that the services provided should be classified as 'works contract service' based on the requirement to provide construction service along with materials, citing a decision by the Hon'ble Supreme Court in a particular case. However, it was noted that the appellant had not previously claimed this classification before the authorities. Consequently, the Tribunal decided to remand the matter to the adjudicating authority to determine the validity of the appellant's claim and assess the applicability of the Supreme Court's principles in the specific case. The appeal was allowed for remand to facilitate a fresh order based on the directions provided.

This judgment primarily revolved around the classification of services provided by the appellant as either 'commercial construction service' or 'works contract service'. The appellant argued for the latter classification, citing a Supreme Court decision, but had not raised this argument earlier in the proceedings. The Tribunal emphasized the importance of consistency in claims and decided to remand the case for further examination by the adjudicating authority. The decision highlighted the need for proper assertion of legal positions throughout the legal process to ensure fair consideration and application of relevant legal principles.

The Tribunal's decision to remand the case underscored the significance of presenting arguments consistently and in a timely manner during legal proceedings. By opting for a remand, the Tribunal aimed to ensure a thorough evaluation of the appellant's claim regarding the classification of services provided. This approach demonstrated the Tribunal's commitment to upholding procedural fairness and allowing for a comprehensive assessment of the legal issues involved. The judgment served as a reminder of the importance of procedural diligence and strategic legal argumentation in matters concerning tax liability and service classification.