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TMI Blog2024 (3) TMI 594X X X X Extracts X X X X X X X X Extracts X X X X ..... under the category of CICS - denial of benefit of Notification No.01/2006 for the construction services rendered to spinning mills (Construction of Commercial / Industrial Complexes) - HELD THAT:- The construction services for the entire period are in the nature of composite services, which involves both supply of materials as well as rendering of services. Being composite services, the demand for the period prior to 01.06.2007 cannot be sustained under CICS as decided by the Hon ble Apex Court in the case of Larsen and Toubro [ 2015 (8) TMI 749 - SUPREME COURT] . For the period after 01.06.2007 the Tribunal in the case of Real Value Promoters Ltd., [ 2018 (9) TMI 1149 - CESTAT CHENNAI] has held that the demand can be only under Works Contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . SULEKHA BEEVI. C. S. And HON BLE MEMBER ( TECHNICAL ) : SHRI VASA SESHAGIRI RAO For the Assessee : Shri Durairaj , Advocate For the Revenue : Shri.Anoop Singh , JC , ( AR ) ORDER Per Ms. SULEKHA BEEVI. C. S. The issue involved in all these appeals being same, they are heard together and are disposed of by this common order. The parties are here after referred to as assessee and department for the sake of convenience. 2. The period involved in appeal No.ST/41743 of 2019 is April 2005 to March 2010. The assessee was issued show cause notice alleging short payment of service tax in respect of constructions provided to Educational institutions as well as construction of commercial and industrial complexes. The demand on both these types of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to March 2012. As per Order in Original dated 28.11.2014 the original authority confirmed the demand raised in the show cause notice under CICS. The assessee had provided construction services to educational institutions. Against the confirmation of demand the assessee is now before the Tribunal. 5. The Ld. Counsel Shri S. Durairaj appeared and argued for the assessee. The Ld. Counsel submitted that for the period prior to 01.06.2007 the decision in the case of Larsen and Toubro Ltd., would be applicable as the demand raised under CICS cannot sustain. The department has raised the demand in respect of construction services rendered for spinning mills (construction of Commercial/Industrial Complexes) for the reason that the assessee has avai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and argued for the department. 8. The grounds of appeal in ST/41743/2019 was reiterated. It is pointed out by the Ld. AR that the decision rendered by the Hon ble Apex Court in the case of Larsen Toubro Ltd, 2015 (39) STR 390 (S.C) would be applicable only for the period prior to 1.6.2007. The Commissioner has erroneously dropped the demand for the period from 1.6.2007 to March 2010. The decision rendered by the Tribunal in the case of Real Value Promoters is not applicable as the department has filed appeal before the Hon ble Apex Court. With regard to the demand raised on services rendered for construction of spinning mills, the Ld. AR submitted that since the assessee has received free supplies, the assessee is not eligible for abatem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operty in goods and rendering of services, such activity would fall under WCS. In present case, all the works executed are composite in nature involving both transfer of property in goods and rendering of services. Therefore, the demand has to be under WCS only. 12. In the case of Real Value Promoters, the Tribunal held that the demand for the period prior to 01.07.2012 can be made only under WCS and the demand made under CICS (RCS) etc., cannot be sustained. The relevant paragraph reads as under: 7.8 On the contrary, being composite works contracts, they will necessarily fall within the ambit of works contract service as defined under section 65(105)(zzzza) ibid. it is possibly with this intent in mind that the lawmakers have included in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal in the case of Jain Housing Society Ltd., was appealed by the department before the Hon ble Apex Court. The appeal filed by the department was dismissed on merits, thereby affirming the decision passed by the Tribunal. We are therefore of the considered opinion that the demand raised by the department on construction services executed for educational institution under CICS for the period from April 2005 to March 2012 cannot be sustained and has to be set aside. 14. In addition, another issue is that for the period from 2005 to March 2010, demand has been raised on the construction services provided to Spinning Mills denying the benefit under Notification No. 1/2006 alleging that the assessee has received free supplies of ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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