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TMI Blog2019 (12) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein this Court while relying on the decision of Hon ble Supreme Court in Lassen Tourbo Ltd. s case [2015 (8) TMI 749 - SUPREME COURT] set aside the service tax demand upto 30.05.2007 and confirmed the same only from 01.06.2007, holding that respondent was providing the services of construction with material and the amount and the material supplied cannot be vivisected. Therefore, the respondent was not liable to pay service tax prior to 1.6.2007 in view of the decision of the Apex Court in COMMISSIONER, CENTRAL EXCISE CUSTOMS VERSUS M/S LARSEN TOUBRO LTD. AND OTHERS [2015 (8) TMI 749 - SUPREME COURT] . The subject matter of this appeal is squarely covered by the ratio of judgment reproduced above and therefore, no illegality ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .06.2005. In other words, respondent was providing the services in the nature of completion and finishing services and was taxable in a general manner under the category of construction services , introduced from 10.09.2004 as defined in clause (25b) of Section 65 of the Act but had not been paying any service tax on the said services during the aforesaid period. Accordingly, a show cause notice dated 21.04.2010 (Annexure A-1) to the respondent was issued to demand ₹ 1,09,41,059/- for the period 10.09.2004 to 31.05.2007 after invoking extended period of limitation. Interest liability under Section 75 of the Act and penalty under Sections 76, 77 and 78 of the Act were also proposed. The Commissioner of Central Excise and Service Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssions made by learned counsel for the parties. 9. The subject matter in this appeal as also the substantial questions of law, already stand adjudicated by this Court in Commissioner of Central Excise and Service Tax, Panchkula vs. M/s Satish Kumar Contractor Ltd., Panchkula, 2019-TIOL-2359-HC-P H-ST, wherein this Court while relying on the decision of Hon ble Supreme Court in Lassen Tourbo Ltd. s case (supra) set aside the service tax demand upto 30.05.2007 and confirmed the same only from 01.06.2007, while observing as under:- 5. The respondent was providing the services of construction with material and the amount and the material supplied cannot be vivisected. Therefore, the respondent was not liable to pay servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall be the percentage of the total amount charged for the works contract, attributable to the service element in such contracts. It is this scheme and this scheme alone which complies with constitutional requirements in that it bifurcates a composite indivisible works contract and takes care to see that no element attributable to the property in goods transferred pursuant to such contract, enters into computation of service tax. 27 to 32 XX XX XX 33. Section 13(3) of the Central Sales Tax Act says:- The State Government may make rules, not inconsistent with the provisions of this Act and the rules made under sub-section (1), to carry out the purposes of this Act. 34. In the aforesaid judgme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imposition of service tax. It is procedural and a matter of calculation. Merely because no rules are framed for computation, it does not follow that no tax is leviable. [at para 36] 35. XX XX XX 36. In a recent judgment by one of us, namely, Shabina Abraham Ors. v. Collector of Central Excise Customs, judgment dated 29th July, 2015, in Civil Appeal No.5802 of 2005, this Court held:- It is clear on a reading of the aforesaid paragraph that hat revenue is asking us to do is to stretch the achinery provisions of the Central Excises and Salt Act, 1944 on the basis of surmises and conjectures. This we are afraid is not possible. Before leaving the judgment in Murarilal s case (supra), we wish to add that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , (1869) LR 4 HL 100 at 122, Lord Cairns stated: If the person sought to be taxed comes within the letter of the law he must be taxed, however great the hardship may appear to the judicial mind to be. On the other hand, if the Crown seeking to recover the tax, cannot bring the subject within the letter of the law, the subject is free, however apparently within the spirit of law the case might otherwise appear to be. In other words, if there be admissible in any statute, what is called an equitable, construction, certainly, such a construction is not admissible in a taxing statute where you can simply adhere to the words of the statute . (at paras 26 and 31). 6. The Tribunal had rightly set aside the service tax demand upto 30. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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