2018 (9) TMI 39 - AT - Service Tax

Commercial or Industrial Construction - period from 10.09.2004 to 31.05.2007 - demand of Service Tax - Held that - The appellant had entered into a composite contract wherein they had supplied the goods along with the service and paying VAT as works contract on the goods supplied by them. Relying on the decision of Hon ble Apex Court in the case of Larsen & Toubro Ltd. 2015 (8) TMI 749 - SUPREME COURT wherein it has been held that if the assessee providing service along with goods, then the service is covered under works contract . Admittedly, the said service is taxable with effect from 01.06.2007 and for the prior period, if assessee is providing service along with material, the assessee is not liable to pay service tax under the category of Commercial or Industrial Construction services. The appellant is not liable to pay service tax as the appellant is providing service along with material - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT ALLAHABAD ruled in favor of the appellant, setting aside the demand for service tax under 'Commercial or Industrial Construction' services for the period from 10.09.2004 to 31.05.2007. The appellant's composite contract supplying goods along with services was considered under 'works contract,' not liable for service tax. The appeal was allowed with consequential relief.