9911796707
TMI Blog2017 (1) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... elements and charged to service tax separately for the period prior to 01/06/2007 when WCS was introduced in the statute - In the present case the import of the machinery alongwith the associated services was complete during the period 2005-2006, before the introduction of WCS. Consequently, we are of the view that the levy of service tax on the service elements by vivisecting the composite contract cannot be upheld. The levy has been upheld on the basis of reverse charge mechanism. Section 66A was introduced into the statute w.e.f. 18/04/2006 providing for levy of service tax on reverse charge basis on the import of service. The position of law is well settled that prior to this date, service tax cannot be levied on reverse charge basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the original Authority, vide his order dated 17/02/2010, confirmed the demand of service tax to the extent of ₹ 22,83,129/- for the period 2005-2006 alongwith imposition of penalties under Sections 76, 77 and 78 of the Finance Act, 1994. When this order was challenged before Commissioner (Appeals), he confirmed the order-in-original vide the impugned order. In the present appeal, the main grounds are as follows :- (i) the activities undertaken by the foreign supplier cannot be subjected to levy of service tax during the period 2005-2006 for the reason that the import of service became taxable only w.e.f. 18/04/2006 when Section 66A was introduced in the statute alongwith the Taxation of Services (provided from outside India and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntract in addition to the price paid for plant and machinery. It is evident that the contract involves both supply of goods as well as rendering of various services. Such contracts would be covered within the category of works contract service. Works Contract Service (WCS) has been introduced as a separate service in the statute w.e.f. 01/06/2007. The Hon ble Supreme Court in the decision of Larsen Toubro Ltd. (supra) has categorically held that any contract in the nature of works contract cannot be vivisected into its various elements and charged to service tax separately for the period prior to 01/06/2007 when WCS was introduced in the statute. In the present case the import of the machinery alongwith the associated services was com ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
