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TMI Blog2025 (2) TMI 480X X X X Extracts X X X X X X X X Extracts X X X X ..... e activities of the appellant have been discussed and it was held that 'The show cause notices in all these cases prior to 1.6.2007 and subsequent to that date for the periods in dispute, proposing service tax liability on the impugned services involving composite works contract, under 'Commercial or Industrial Construction Service' or ' Construction of Complex' Service, cannot therefore sustain.' Conclusion - For composite contracts involving transfer of property in goods, service tax liability would fall under Works Contract Service. The impugned order in appeal upholding the impugned order in original of the adjudicating authority confirming the demand under construction of complex service together with demand of appropriate in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice tax on 33% of the gross value of the amounts received from the customers during January 2009 to March 2010 towards provision of construction of residential complex service, issued a show cause notice dated 03.04.2014 invoking the extended period of limitation and demanding the service tax due, along with appropriate interest thereon and proposals to impose penalties. After due process in law, the adjudicating authority issued the impugned OIO confirming the demands as proposed along with interest thereon and imposing penalties under Section 77(2) and Section 78 of the Act. Aggrieved, by the impugned OIO, the appellant preferred an appeal before the appellate authority. However, the appellate authority rejected the appeal vide the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST & Central Excise, Chennai, M/s. Jain Housing and Construction Ltd v The CST, Chennai, 2023 (2) TMI 1044-CESTAT, Chennai which stood affirmed by the Hon'ble Supreme Court in The Commissioner of Service Tax v M/s. Jain Housing and Construction Ltd, 2023 (9) TMI 816 (SC). The counsel submits that the appeal preferred may be allowed by setting aside the demand, interest and penalties imposed. 4. The learned authorised representative, Smt. Anandalakshmi Ganeshram, reiterated the findings of the appellate authority. 5. We have heard both sides and perused the records. The only issue that arises for consideration is whether the activities of the appellant developer is exigible to service tax under construction of complex service for the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, dealing with valuation of taxable services, refers to the gross amount charged for service, the services of CICS and CCS would cover only pure service activities, as any contrary view would imply that the Union Government can levy service tax on the gross amount, including the value of transfer of property in goods also, which is constitutionally impermissible. The exemption notifications issued at the discretion of the executive are not sufficient to sustain the levy. The Hon'ble Apex Court has also observed that only with the introduction of WCS as a separate taxable service, statutory mechanism to exclude the value of transfer of property in goods has been prescribed. 3.6 The effect of the above decision is that CICS and C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stage of adjudication or appeal proceedings, the demand cannot be confirmed under WCS, when the show cause notice raises demand on CICS/CCS. Such an attempt would amount to travelling beyond the scope of the show cause notice, which is not permissible. 3.9 Though the definition of WCS incorporates the definitions of CICS / CCS into it, the scope of coverage of these services are distinct. While the definition of CICS / CCS would cover such construction activities without involving any transfer of property in goods (Example:- Where all materials required for the construction are supplied by the service recipient and the service provider is engaged only for provision of construction service), a composite construction activity would fall onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e exigible to service tax liabilities under 'Works Contract Service' as defined under section 65(105)(zzzza) ibid. d. The show cause notices in all these cases prior to 1.6.2007 and subsequent to that date for the periods in dispute, proposing service tax liability on the impugned services involving composite works contract, under 'Commercial or Industrial Construction Service' or ' Construction of Complex' Service, cannot therefore sustain. In respect of any contract which is a composite contract, service tax cannot be demanded under CICS / CCS for the periods also after 1.6.2007 for the periods in dispute in these appeals. For this very reason, the proceedings in all these appeals cannot sustain." 9. We find that the decision in Real V ..... X X X X Extracts X X X X X X X X Extracts X X X X
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