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TMI Blog2022 (8) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... the services rendered by them are taxable for the period from 1st June, 2007 to 30th September, 2008 the narrow confines of the show cause notices do not permit confirmation of demand of tax on any service other than commercial or industrial construction service. Since the issue is no longer res-integra, the instant demand of service tax under the category of Commercial or Industrial Construction cannot be sustained and hence, set aside - appeal allowed - decided in favor of appellant. - Service Tax Appeal No.126 of 2011 WITH Service Tax Appeal No.154 of 2011 - FINAL ORDER NO. 75445-75446/2022 - Dated:- 8-8-2022 - SHRI P. K.CHOUDHARY, MEMBER (JUDICIAL) AND SHRI P.ANJANI KUMAR, MEMBER (TECHNICAL) Shri Rajeev Agarwal, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining 10% of the total contract value. Show Cause Notice dated 15.10.2009 (SCN) was issued which has been adjudicated by the Ld. Commissioner vide Order-in-Original dated 31.01.2011 confirming the demand of service tax under the category of Commercial or Industrial Construction Services . The Ld. Commissioner has extended the benefit of abatement @ 67% to exclude the value of goods in order to arrive at the value of taxable services in terms of Notification No. 01/2006-ST dated 01.03.2006 by considering the project to be inclusive of supply of goods for use in the construction project. The Ld. Commissioner also observed that the said market complexes are being constructed for the local government bodies for letting out, and hence, such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x. Cus., Kerala vs. Larsen Toubro Ltd. 2015 (39) S.T.R. 913 (S.C.) to submit that works contract services cannot be taxed under Commercial Construction Service. 4.2 He also relied on the Tribunal s decision in the case of URC Construction (P) Ltd. vs. CCE, Salem 2017 (50) S.T.R. 147 (Tri Chennai) wherein it has been held that when no proposal is made in the SCN to classify the service under the category of Works Contract Service , the demand of service tax cannot be sustained for the period subsequent to 01.06.2007. 4.3 He also referred to the letter dated 13.03.2008 issued by the Ld. Joint Secretary, MAHUD department, State Government of Manipur, addressed to NBCC wherein it has been stated that the market complexes constructed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner of Central Excise and Customs, Kerala v. Larsen Toubro Ltd. [2015 (39) S.T.R. 913 (S.C.)] has settled the law to the effect that composite contracts involving services and goods covered under four categories, i.e., erection, commissioning and installation , construction of building for commerce and industry , construction of residential complex and turnkey projects , under Section 65(105)(zzzza) are liable to tax only with effect from 1st June, 2007. It is also contended that, at the adjudication stage, they had taken the plea that they being providers of works contract service were not liable to tax as providers of commercial or industrial construction service . This plea was not accepted by the adjudicating authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale of goods. On this basic criterion, having not been fulfilled, applicability to tax of Works Contract Service involves a remote question. Their contention is, therefore, superfluous being devoid of any substance of law and, therefore, fails before the altar of law . was relied upon by the learned Authorised Representative to reiterate that the adjudicating authority had no means of ascertaining that these were composite contracts. 7. Having heard both sides on this limited issue, we are of the opinion that the resolution of this dispute lies within the narrow compass of taxability as works contract service . We note the contention of learned Counsel that the adjudicating authority had perused the contracts on which the demand was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said sub-clauses are service contracts simpliciter without any other element in them, such as for example, a service contract which is a commissioning and installation, or erection, commissioning and installation contract. Further, under Section 67, as has been pointed out above, the value of a taxable service is the gross amount charged by the service provider for such service rendered by him. This would unmistakably show that what is referred to in the charging provision is the taxation of service contracts simpliciter and not composite works contracts, such as are contained on the facts of the present cases. It will also be noticed that no attempt to remove the non-service elements from the composite works contracts has been made by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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