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2020 (6) TMI 143 - AT - Service TaxClassification of services - Works Contract or not - Consulting Engineers and Transport of Goods Agency - case of the department is that Erection, Installation and Commissioning service was independently taxable during the periods involved i.e. 01.04.04 to 31.03.2009 hence the same is taxable - Taxability prior to 01.06.2007 - HELD THAT - This very issue has been finally decided by the Hon ble Supreme Court judgment in the case of COMMISSIONER, CENTRAL EXCISE CUSTOMS VERSUS M/S LARSEN TOUBRO LTD. AND OTHERS 2015 (8) TMI 749 - SUPREME COURT . The adjudicating authority had no occasion to consider the said judgment as the same was delivered after passing the impugned order - As regard the period post 01.06.2007, though the appellant have made categorical submissions before the adjudicating authority on the factual aspect that in some of receipts the service was provided prior to 01.06.07, in some cases the receipt of amount is towards payment of retention money and is some cases though the service tax paid but under different head of Consulting Engineer service. However all the submissions were not considered by the adjudicating authority perhaps for the reason that when he has decided the taxability pre and post 01.06.2007, he did not feel necessary to consider the said factual aspects - appeal allowed by way of remand.
Issues Involved:
Classification of service as "Works Contract" or "Erection, Installation and Commission" for service tax liability pre and post 01.06.2007. Analysis: The appellant, engaged in providing services of "Consulting Engineer" and "Erection, Installation and Commissioning," registered under "Consulting Engineers and Transport of Goods Agency," faced a demand notice for service tax, interest, and penalties. The department argued that the "Erection, Installation and Commissioning" service was independently taxable during 01.04.04 to 31.03.2009. The appellant contended that as the project was executed with the supply of goods, it falls under Works Contract, not taxable until 01.06.2007. The adjudicating authority upheld the demand, considering the contract as composite for service and goods supply, classifying it under "Erection, Installation and Commissioning," citing various judgments. The appellant appealed, citing the Larsen & Toubro Ltd. case supporting their stance. The issue was whether the service was taxable under "Works Contract" or "Erection, Installation and Commissioning" pre and post 01.06.2007. The Tribunal found the Supreme Court's Larsen and Toubro Ltd. judgment decisive, not considered by the adjudicating authority. Regarding the period post 01.06.2007, the appellant's submissions on factual aspects were not addressed, necessitating a remand for a fresh order on all issues. The appellant's argument relied on the Larsen & Toubro Ltd. case, emphasizing that the service should be classified as "Works Contract" and not taxable before 01.06.2007. The adjudicating authority's decision was based on considering the contract as composite for service and goods. The Tribunal found the Larsen and Toubro Ltd. judgment crucial, directing a remand for a comprehensive reevaluation of all issues, including the factual aspects post 01.06.2007, not adequately addressed previously.
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