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TMI Blog2017 (7) TMI 798X X X X Extracts X X X X X X X X Extracts X X X X ..... clear finding not contested by revenue as an admitted fact, then in our considered view the same needs to considered on works contract services. Whether post 01.06.2007 the above construction would be taxable under works contract or otherwise? - Held that: - Post 01.06.2007, the construction activity undertaken by the appellant for the Government organizations are not taxable, is the claim of the appellant which has been rejected by the adjudicating authority on a finding that appellant had undertaken this activity of construction of quarters as a sub-contractor for Central Public Works Department (CPWD). Whether construction activity undertaken by appellant for private parties is taxable prior to and post 1.6.2007 or otherwise and wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T (Commnr.) dated 30.04.2010. 2. The relevant facts that arise for consideration are during the period 2004-05 to 2007-08, it was alleged that the appellant herein had rendered the services of commercial or industrial construction services or construction of complex services and has not discharged the applicable service tax liability. On this ground, show cause notice was issued to appellant directing them to show cause as to why the service tax liability be not demanded along with interest and why penalties be not imposed. The appellant contested the show cause notice on merits putting forth the argument that prior to 01.06.2007 and post 01.06.2007 the contracts executed by them are works contract and not liable to tax prior to 01.06.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision in the case of Larson Turbo Ltd., [2015 (39) STR 913 (S.C)] and Khurana Engineering Ltd., [2011 (21) STR 115 (Tri-Ahmd)] and M/s R B Chy Ruchi Ram Khattr and Sons [2015-TIOL-288-CESTAT-DEL]. As regards the construction activity for private builders he submits since they had already paid service tax liability with interest, question of imposing any penalty does not arise. 4. Ld. DR on the other hand submits that the appellant during the period in question prior to and post 01.06.2007 has undertaken a work of the construction of residential premises though claimed by him as works contract, it is in fact nothing but construction of commercial and industrial services and construction of complex services. He would submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In respect of the construction activities undertaken prior to 01.06.2007, we find that the adjudicating authority has clearly recorded that these construction activities were undertaken by the appellant under EPC contract; there being such a clear finding not contested by revenue as an admitted fact, then in our considered view the same needs to considered on works contract services, accordingly the decision of the Apex Court in the case of Larsen Turbo (supra) would cover the issue in the favour of the appellant, as in the said judgment, the Apex Court has settled the law holding that prior to 01.06.2007, works contract services are not taxable by vivisecting into various services. Post 01.06.2007, the construction activity undertake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arged tax liability post 01.06.2007, we find that claims needs to be verified by the lower authorities from the documents that may be produced by the appellant. For the limited purpose of verifying the claim of the appellant that they have not collected any service tax prior to 01.06.2007 from the private parties, we remit the matter for this limited purpose to the adjudicating authority for verification. If it is ascertained that appellant has already discharged service tax liability post 01.06.2007 without collecting the same from service recipient, then there is no question of any liability of service tax on the services rendered to private parties. 8. In view of the foregoing, since the issue is covered by the various decisions of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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