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TMI Blog2019 (11) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... und that the appellant has availed cenvat credit on Telecom Services. Classification of services - Whether the activities of construction of complex developed by Nagar Panchayat, building of private college and boundary wall of different parties undertaken by the appellant and are liable to be taxed under Construction Services or Works Contract Services as same has been provided alongwith material? - HELD THAT:- The issue has already been settled by the decision of the Hon ble Apex Court in the case of Larson Toubro Ltd. [ 2015 (8) TMI 749 - SUPREME COURT ] wherein it has been held that prior to 01.06.2007, if service is provided alongwith material, no service tax is payable by the assessee. Further, for the period, post 01.06.2007, the dem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elecom Services alongwith interest before issuance of the show cause notice, in that circumstances, we hold that the appellant is entitled for the benefit of Notification No. 01/2006-ST dated 01.03.2006. The appellant is not liable to pay service tax - Appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... Service Tax was also proposed on TDS deducted from the payments released by various parties, amount adjusted on account of electricity charges, water expenses and ESI expenses, retention money and mobilisation of advances. Service tax was also proposed on material supplied free of cost by the service recipient. It is also proposed for denial of abatement under Notification No. 01/2006-ST dated 01.03.2006 on the ground that the appellant has availed cenvat credit on Telecom Services. The matter was adjudicated, the demand of service tax was confirmed against the appellant alongwith interest and penalties were also imposed. The total period involved is September 2004 to March 2008. Against the said order, the appellant is before us. 3. The L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey are entitled for the benefit of Notification No. 01/2006-ST dated 01.03.2006 as held by this Tribunal in the case of JCT Ltd. vs. CCE, Jalandhar - 2017 (345) ELT 289 (Tri.-Chan.). It is also submitted that the extended period of limitation is not invokable as the show cause notice has been issued on 16.04.2010 for the period September 2004 to March 2008 by invoking the extended period of limitation. The entire demand is barred by limitation as there was a dispute on the issue during the relevant period, therefore, no penalty is imposable on the appellant. 6. On the other hand, the Ld. AR relied upon the decision of the adjudicating authority. 7. Heard the parties and considered the submissions. 8. On careful consideration of submis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the decision of Sristhi Constructions (supra), we hold that the service tax is not payable by the appellant wherein this Tribunal has observed as under:- "In view of the above analysis, we hold that on merits, the appropriate classification of the services in question is "Works Contract Service" and show cause notices not allege to demand service tax under Woks Contract, therefore, the demand of service tax is set-aside. We also hold that extended period of limitation is not invokable. Accordingly, the impugned orders are set-aside and appeals are allowed with consequential relief." In view of this, we answered the Issue No. -I in favour of the appellant and hold that for services provided by the appellant construction of complexes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es or debit notes were issued or any book adjustments were made. Likewise, the words, 'any amount credited or debited, as the case may be', to any account whether called 'suspense account or by any other name, in the books of accounts of a person liable to pay service tax' would not include the value of the goods supplied free as no amount was credited or debited in any account. In fact, this last portion is related to the debit or credit of the account of an associate enterprise and, therefore, takes care of those amounts which are received by the associated enterprise for the services rendered by the service provider." Therefore, we hold that the appellant is not liable to pay service tax on the value of free material supplied by the se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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