9911796707
TMI Blog2018 (10) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... nstruction Services (CICS). It was noticed that appellant though filed the ST-3 returns they had not included the value of taxable services in respect of the two projects viz. Ramanathapuram Park and PN Pudur Vestal and failed to disclose the details of payments received for providing services in relation to Construction of Residential Complex Services (RCS). Accordingly Show Cause Notice No. 2/2010- Commr. dt. 19.04.2010 was issued, inter alia proposing to demand total service tax liability of Rs. 2,74,02,157/- under the category of construction of commercial complexes and residential complex service for the period January 2007 to December 2009 along with interest thereon as under. The show cause notice also proposed penalties under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible works contract prior to its introduction from 1.6.2007 which was finally settled by the Hon'ble Apex Court in the case of Commissioner of Central Excise Vs. Larsen & Toubro Ltd. reported in 2015 (39) STR 390 (SC). The Hon'ble Apex Court held that the taxable services of 'consulting engineer' under section 65(105)(g) of the Finance Act; erection, 'commission and installation services' under section 65(105)(zzd) of the said Act; 'technical testing and analysis' under section 65(105)(zzh) ibid; 'construction services' under section 65(105)(zzq); construction of complex services under section 65(105)(zzzh) would refer only to service contracts simpliciter and not to composite works contracts; that these five taxable services only would qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heme for Payment of Service Tax) Rules, 2007. In any case, the show cause notices implicitly agree that the work performed by the appellant is in the nature of composite works contract only. Based on the Hon'ble Apex Court judgment in Larsen & Toubro, such composite works contract then will not be liable to service tax levy prior to 1.6.2007. On the same ratio, such composite contracts even for the period after 1.6.2007 disputed in these appeals will still have to be held as composite works contract only and not pure service simpliciter contracts that could be classified under commercial or industrial construction service, or construction of complex service. To put in another way, to merit being classified as CICS or CCS, the service provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er cent of the total value of the words contract". 7.10 The issue was analyzed by the Hon'ble Apex Court in Larsen & Toubro case (supra) and held that there can be no levy of service tax on composite contracts (involving both service and supply of goods) prior to 1.6.2007. This read together with the budget speech as above would lead to the strong conclusion that composite contracts were brought within the ambit of levy of service tax only with effect from 1.6.2007 by introduction of Section 65(105)(zzzza) i.e. Works Contract Services. As pointed out by the ld. counsels for appellants, there is no change in the definition of CICS/CCS/RCS after 1.6.2007. Therefore only those contracts which were service simpliciter (not involving supply of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, as per the provisions of Section 65A of the Finance Act, 1994, it would be the appropriate classification for the part of the service provided after that date." 7.12 Thus, for example, while construction of a new residential complex as a service simpliciter would find a place under section 65(105)(30b) of the Act, the same activity as a composite works contract will require to be brought under section 65(105)(zzzza) Explanation (c). For both these categories for the definition of residential complex, the definition given in section 65(105)(91a) will have to be adopted as discussed above will have to be taken into account. .......... 8. In the light of the discussions, findings and conclusions above and in particular, relying on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
