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TMI Blog2019 (2) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... the same, the demand prior to 01.06.2007 cannot Sustain and requires to be set aside. The Tribunal in the case of M/s. Real Value Promoters Pvt. Ltd., [2018 (9) TMI 1149 - CESTAT CHENNAI] had discussed in detail the leviability of service tax on composite contracts under the category of CCS/CICS/ECIS for the period after 01.06.2007. The Tribunal therein had observed that after 01.06.2007, the demand for such composite contracts can attract the levy of service tax under the category of Works Contract Services only. The demand prior to 01.06.2007 or after cannot sustain - Appeal allowed - decided in favor of appellant. - ST/41671/2013 - FINAL- ORDER No. 42779/2018 - Dated:- 31-10-2018 - Smt. Sulekha Beevi C.S, Member (Judicial) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The period involved is from Apr.'07 to Mar.,11. undisputedly, the works executed or the contracts entered are of composite in nature as it involves supply of materials as well as element of services. The Hon'ble apex court in the case of M/s. Larsen Touboro Ltd., (supra) has held that such contracts which are composite in nature are not leviable to service tax prior to 01 .06.2007. Following the same, we are of the opinion that the demand prior to 01.06.2007 cannot Sustain and requires to be set aside, which we hereby do. 6, In this appeal, part of the demand falls after 01.06.2007 and the demand has been made under Construction of Complex Service The Tribunal in the case of M/s. Real Value Promoters Pvt Ltd., (supra) had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds has been prescribed. The Apex Court held that since the Finance Act had not laid down any charge or machinery to levy and assess service tax on indivisible works contract prior to 1.6.2007, the levy on such composite works contract prior to that date has no constitutional validity The Larsen Toubro (supra) judgment has been followed by this Tribunal in many numbers of cases to set aside the demand of service tax on services like commercial or industrial construction service, construction of complex service etc. involving composite contract of both material supply as well as service element prior to 1.6.2007. In the present appeal also, there is no dispute that the construction activities are in the nature of composite works cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vities of the appellants will therefore continue to be in the nature of composite works contract services and hence even after 1.6.2007 for the periods disputed in these appeals they cannot be brought within the fold of commercial or industrial construction service or construction of complex service as proposed in the show cause notices and confirmed in the impugned orders. On the contrary, being composite works contracts, they will necessarily fall within the ambit of works contract service as defined under section 65(105)(zzzza) ibid. It is possibly with this intent in mind that the lawmakers have included in the definition of works contract, erection and commissioning service, commercial or industrial construction service, constructio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portion of composite contract was introduced only in 2007' The ld. AR Shri A. Cletus has tried to counter this contention by stating that works contract service is service I activity which would be of a general nature whereas the construction activities defined in Commercial or Industrial Construction Services, Construction of Complex Service and Construction of Residential Complex etc. are of special nature. He took support Of the maxim generalia specialibus non derogant general things do not derogate special things . The counsel for appellants have submitted that as per Section 65A of the act ibid, classification of service shall be based on the specific entries and the more specific description of Service has to be preferred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature of composite works contract cannot be brought within the fold of commercial or industrial construction service or construction of complex service in the light of the Hon'ble Supreme Court judgment in Larsen Toubro (supra) upto 1.6.2007 b For the period after 1 .6.2007, service tax liability under category of 'commercial or industrial construction service' under Section 65(105)(zzzh) ibid, 'Construction of Complex Service' under Section 65(105)(zzzq) will continue to be attracted only if the activities are in the nature of services' simpliciter. c. For activities of construction of new building or civil structure or new residential complex etc. involving indivisible composite contract, such services w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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