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TMI Blog2023 (12) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... s Kerala Vs. Larsen Toubro Ltd [ 2015 (8) TMI 749 - SUPREME COURT ], the activities carried out by the appellant, which fall under the category of works contract are subject to levy of service tax only after 01.06.2007. Further, the Learned AR submits that at the relevant time the service rendered by the appellant was subject to service tax and considering the law laid down by Apex Court in the matter of M/s Larsen Toubro Ltd Vs. Commissioner of Service Tax, Kolkata [ 2019 (12) TMI 69 - CALCUTTA HIGH COURT ] service tax is not applicable in appellant case. Appeal allowed. - Hon'ble P.A. Augustian, Member (Judicial) And Hon'ble Mr. Pullela Nageswara Rao, Member (Technical) Mr. Anwar, Advocate for the Appellant M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er submitted that issue is settled by Hon ble Supreme Court in the case of Commissioner of Central Excise Customs, Kerala Vs. Larsen Toubro Ltd 2015 (39) STR 913 (SC) and held that the levy of service tax on works contract fails prior to 01.06.2007, in absence of a charging section, which was introduced only with effect from 01.06.2007. Relevant extract of the Apex Court s decision is hereunder: 15 ..This being the case, we feel that the learned counsel for the assesses are on firm ground when they state that the service tax charging section itself must lay down with specificity that the levy of service tax can only be on works contract, and the measure of tax can only be on that portion of works contracts which contain a service e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct that even prior to the aforesaid amendment being made to the Finance Act, 1994 service tax on works contract was leviable is not correct. It was being levied on purely service contract and not on service element of works contract as there was no definition of a works contract till then. Hence, the amendment made to the Finance Act, 1994 by insertion of the definition of works contract as under clause (zzzza) is not clarificatory in nature. Having found that the service tax was not at all leviable on service element of a works contract, Parliament felt the need for the amendment and was so incorporated by the Finance Act, 2007. 4. The decisions of the various Hon ble Courts and Tribunals holding that service tax is not leviable on wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td (supra), the activities carried out by the appellant, which fall under the category of works contract are subject to levy of service tax only after 01.06.2007. Further, the Learned AR submits that at the relevant time the service rendered by the appellant was subject to service tax and considering the law laid down by Apex Court in the matter of M/s Larsen Toubro Ltd Vs. Commissioner of Service Tax, Kolkata (2020 (32) G.S.T.L 538 (Cal) (Supra) service tax is not applicable in appellant case. 8. Considering the above discussion and the ration laid by the Hon ble Apex Court in Larsen and Toubro(supra), appeal is allowed with consequential relief, if any, as per law. ( Order pronounced in Open Court on 07. 12. 2023 ) - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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