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TMI Blog2022 (2) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... vice tax by the appellant under some other heading albeit by a mistake could not render the service taxable. The appellants have demonstrated that the works undertaken by them were under works contract and due VAT was paid on the very same work contracts. It is settled principle of law that if a new levy comes into existence on a specific date, the same set of activity cannot be held to be taxable under a different heading prior to the date of coming into existence of the levy. Apex Court in COMMISSIONER, CENTRAL EXCISE CUSTOMS VERSUS M/S LARSEN TOUBRO LTD. AND OTHERS [ 2015 (8) TMI 749 - SUPREME COURT] has categorically held that works contract cannot be taxed before 1.6.2007. The appellants were not required to pay service tax an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ospective and therefore, refund cannot be granted. Learned counsel for the appellant submits that they have executed works contract on turnkey basis with KPTCL; the contracts included supply, civil works and erection of transmission lines; KPTCL had deducted the VAT/works contract tax while making payments; service tax on works contract came into effect only from 1.6.2007. 2.1 Learned counsel submits that the appellants had paid service tax by vivisecting the composite contract of works involving both supply of goods and service; apex court in the case of Larsen and Tourbo: 2015 (39) STR 913 (SC) held that service tax on works contract cannot be levied prior to 1.6.2007 and the decision has been followed in so many cases by CESTAT. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, payment of service tax by the appellant under some other heading albeit by a mistake could not render the service taxable. The appellants have demonstrated that the works undertaken by them were under works contract and due VAT was paid on the very same work contracts. It is settled principle of law that if a new levy comes into existence on a specific date, the same set of activity cannot be held to be taxable under a different heading prior to the date of coming into existence of the levy. Apex Court has categorically held that works contract cannot be taxed before 1.6.2007. We follow the decision of the apex court and hold that the appellants were not required to pay service tax and any tax thus paid under a mistaken notion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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