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TMI Blog2018 (4) TMI 1469X X X X Extracts X X X X X X X X Extracts X X X X ..... ouse for police but we are of the view that individual contracts are required to be scrutinized before such benefit is extended. For this purpose the issue is remanded to the adjudicating authority for passing de novo decision. Appeal allowed in part and part matter on remand. - Appeal No. ST/52746/2014-DB - Final Order No. 51641/2018 - Dated:- 27-4-2018 - Hon ble Mr. S.K. Mohanty, Member (Judicial) And Hon ble Mr. V. Padmanabhan, Member (Technical) Shri O.P. Agarwal, CA for the appellant Shri Sanjay Jain, AR for the respondent ORDER Per : V. Padmanabhan 1. The present appeal is filed against the Order-in-Original No. 122/13-14 dated 29/01/2014. During the disputed period i.e. 01/04/2006 to 31/03/2011, appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice as well as supply of goods and hence such contracts are in the nature of works contracts. The Hon ble Supreme Court in the case of Larsen Toubro reported at 2015 TIOL 187 SC-ST has held that composite works contracts will be liable to service tax only w.e.f. 01/06/2007 when a separate entry was added in the statute for works contract under Section 65 (105) (zzzza) of the Finance Act, 1994. Accordingly, It was submitted that no Service Tax can be levied on the construction activity of the appellant for the period up to 31/05/2007. II. Since the taxability of works contract was the subject matter of dispute for a long time and the matters were referred to different Larger Benches of the Tribunal and was finally resolved by the Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. The appellant has failed to pay the Service Tax in spite of the clarity in the statute and have also failed to file statutory returns. Consequently, he argued that extended period of limitation will be available to the Revenue to recover such Service Tax. However, he fairly admitted that in respect of contracts executed for construction of Government buildings no Service Tax will be liable to be paid, but submitted that each contract will need to be scrutinized in this regard. 5. We have heard both sides at length and perused the appeal record. 6. Both sides have agreed that for the period up to 31/05/2007, no Service Tax will be payable by the appellant since the construction activity undertaken by them is in the nature of compos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n thereafter the dispute continued about vivisecting the contract for valuing tax purpose. The matter was referred to five Member Larger Bench in the Tribunal in the case of Larsen Toubro Ltd. and the decision was also put to test before the Hon ble Supreme Court resulting in the final order, stated above. In such circumstances, we find invoking extended period for alleging fraud etc. is not legally sustainable. As such, the service tax liability under works contract service against the appellants shall be restricted to normal period as applicable under Section 73 of the Finance Act, 1994. On the same reasoning, penalties imposed on the appellants are also set aside in terms of Section 80 of the Finance Act, 1994. By following the ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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