9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 142 - AT - Service TaxConstruction of Residential Complex Service - composite contracts - period 01.04.2006 to 30.06.2008 - demand of service tax - Held that - The period involved is from 01.04.2006 to 30.06.2008. undisputedly, the works executed or the contracts entered are of composite in nature as it involves supply of materials as well as element of services - The Hon ble apex court in the case of M/s. Larsen & Touboro Ltd., 2015 (8) TMI 749 - SUPREME COURT has held that such contracts which are composite in nature are not leviable to service tax prior to 01.06.2007 - the demand prior to 01.06.2007 cannot sustain. The part of the demand falls after 01.06.2007 and the demand has been made under construction of complex Service, The Tribunal in the case of M/s. Real Value pronoters Pvt. Ltd., 2018 (9) TMI 1149 - CESTAT CHENNAI had discussed in detail the leviability of service tax on composite contracts under the category of CCS/CICS/ECIS for the period after 01.06.2007. The Tribunal therein had observed that after 01.06.2007, the demand for such composite contracts can attract the levy of service tax under the category of Works Contract Services only. The demand prior to 01.06.2007 or after cannot sustain - appeal allowed - decided in favor of appellant.
Issues:
Demand of service tax for the period 01.04.2006 to 30.06.2008 under Construction of Residential Complex Service. Analysis: 1. Issue of demand prior to 01.06.2007: The appellant argued that demand before 01.06.2007 cannot be sustained as their contracts were composite involving both materials and services. Citing the case of Commissioner of Central Excise vs. Larsen & Toubro Ltd., it was contended that composite contracts are not liable to service tax pre-01.06.2007. The Tribunal agreed and set aside the demand for this period. 2. Issue of demand after 01.06.2007: The demand post-01.06.2007 was made under Construction of Complex Service. The Tribunal referred to the case of M/s. Real Value Promoters Pvt. Ltd. and the judgment of Larsen & Toubro case to establish that post-01.06.2007, composite contracts attract service tax under Works Contract Services only. The Tribunal held that the appellant's activities remained composite works contracts even after 01.06.2007, falling under Works Contract Service, not under Commercial or Industrial Construction Service or Construction of Complex Service. 3. Legal Interpretation: The Tribunal analyzed the legal provisions and judgments, emphasizing that composite contracts were brought under service tax only from 01.06.2007 with the introduction of Works Contract Services. The Tribunal rejected the argument that Construction of Complex Service or Commercial or Industrial Construction Service should apply, stating that only service simpliciter without goods supply can fall under those categories. 4. Conclusion: The Tribunal ruled that the demand both pre and post-01.06.2007 could not be sustained and set it aside. The judgment highlighted the distinction between composite works contracts and service simpliciter, clarifying that the appellant's activities fell under Works Contract Service, not under other specified categories. The appeal was allowed with consequential reliefs, if any, in favor of the appellant.
|
