9911796707
TMI Blog2024 (1) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... ces is liable to service tax under Works Contract Service only with effect from 01.06.2007. The decision of the Hon ble Apex Court in the case of M/s Larsen Toubro Ltd. cited has been upheld by the Hon ble Apex court in the case of Total Environment Building System Pvt. Ltd. cited cited [ 2022 (8) TMI 168 - SUPREME COURT] wherein the Honble Apex Court has clearly held that the service tax cannot be levied on composite works Contracts prior to introduction of Finance Act, 2007 - It is not in dispute that the services rendered by the respondent to I.O.C.L falls under the category of Works Contract Service but the Revenue has sought to tax them under the category of Commercial or Industrial Construction Service as defined under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egory of Commercial or Industrial Construction Services as defined under Section 65 (25b) of Finance Act, 1994 which has been made taxable service under Section 65(105)(zzq) of the Finance Act, 1994. The respondent got themselves registered with the department under the category of Work Contract Services on 08.06.2007. The Commissioner, Central Excise Commissionerate, Chandigarh-I, vide his letter dated 27.12.2010 addressed to Central Excise Commissionerate, Panchkula, had informed that the contractors engaged by the Punjab State Office of M/s Indian Oil Corporation Ltd., (I.O.C.L.) for executing various works were not paying service tax even after getting service tax registration numbers. Thereafter, an investigation was carried out aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he services provided by the respondent as Works Contract Service only. He also submitted that the adjudicating authority has failed to take cognizance of the facts that the Works Contract Service were subjected to service tax with effect from 01.06.2007 whereas instant dispute also relates to a period prior to 01.06.2007. He also submitted that the adjudicating authority while recognizing that the contract entered into by the respondent were in the nature of turn key projects has wrongly dropped the demand for the period prior to 01.06.2007 by ignoring the allegation of the department that during the said period, the service provided by the respondent were taxable under the category of Commercial or Industrial Construction Services. He fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecord, we find that this issue is no more res integra and has been settled by the Hon ble Apex Court in the case of M/s Larsen Toubro Ltd. cited (Supra) wherein, the Hon ble Apex Court has held that the composite indivisible works contracts involving goods and services is liable to service tax under Works Contract Service only with effect from 01.06.2007. 8. Further, we find that the decision of the Hon ble Apex Court in the case of M/s Larsen Toubro Ltd. cited (Supra) has been upheld by the Hon ble Apex court in the case of Total Environment Building System Pvt. Ltd. cited cited (Supra) wherein the Honble Apex Court has clearly held that the service tax cannot be levied on composite works Contracts prior to introduction of Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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