9911796707
TMI Blog2018 (10) TMI 1645X X X X Extracts X X X X X X X X Extracts X X X X ..... and prior to 01.06.2007 cannot sustain and requires to be set aside. Construction of Complex Service - Part of the demand falls after 01.06.2007 - Held that:- 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/00533/2011 - FINAL ORDER NO. 42793/2018 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ala Vs M/s. Larsen Touboro Ltd., reported in 2015 (39) S.T.R.913 (S.C.) is applicable to the facts of the present case and the demand prior to 01.06.2007 cannot sustain. The period after 01.06.2007 is not subject to levy of service tax as per the decision of the Tribunal in the case of M/s. Real Value Promoters Pvt Ltd., vide Final Order No.42436-42438/2018, dated 18.09.2018 and argued that the activity being in the nature of composite contract is not subject to levy of service tax under the category of Commercial or Industrial Construction Service or Construction of Complex Service for the period after 01.06.2007. 4. Heard both sides. 5. The period involved is from Jun.'05 to Jan'10. Undisputedly, the works executed or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ission 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 qualify without any other element. The Hon ble Supreme Court also observed that with introduction of works contract service as a separate taxable service, statutory mechanism to exclude the value of transfer of property of goods has been prescribed. The Apex Court held that since the Finance Act had not laid down any charge or machinery to levy and assess ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 provider concerned will be rendering only service simpliciter without any other element in them namely without any material or goods supply involved. That is definitely not the case in the facts of these appeals. The activities 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 perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 goods) would be subject to levy of service tax under CICS / CCS / RCS prior to 1.6.2007 and after. Our view is supported by the fact that the method / scheme for discharging service tax on the service 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tract 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. In the light of the discussions, findings and conclusions above and in particular, relying on the ratios of the case laws cited supra, we hold as under:- a. The services provided by the appellant in respect of the projects executed by them for the period prior to 1.6.2007 being in the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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