9911796707
TMI Blog2025 (3) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... .
The Works Contract Service became taxable w.e.f. 01.06.2007 as held by the Hon'ble Supreme Court in the case of Larsen & Toubro Ltd. [2015 (8) TMI 749 - SUPREME COURT] and in the said case, it has been held that prior to 01.06.2007, works contract service cannot be subjected to service tax levy by vivisecting the composite service contract, which includes both goods and service.
Conclusion - The works contract services involving both goods and services cannot be taxed by dissecting the composite contract prior to June 1, 2007.
The impugned order is set aside and the appeal is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... Value Added Tax Act, 2003 under the category of Works Contract Service and discharging VAT applicable to Works Contract during the relevant period. In support of the fact that they are rendering Works Contract service, the appellant had referred to Work Order dated 13.02.2008 issued by IOCL for the total value of Rs.3.44 Crores relating to construction of drains, extension of fire hydrant line and other allied works etc. at Irumpanam Terminal, Kochi. 3.2. He has further submitted that in the Work Order read with schedules enclosed therewith, it is clear that the work required to be executed involves both material as well as labour; hence, the services rendered by the appellant during the period in question i.e. from January 2005 to March 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. (supra) and in the said case, it has been held that prior to 01.06.2007, works contract service cannot be subjected to service tax levy by vivisecting the composite service contract, which includes both goods and service. The said judgment has been followed by the Hon'ble Supreme Court in the case of Total Environment Building Systems (P) Ltd. Vs. Deputy Commissioner of Commercial Taxes [2022(63) GSTL 257 (SC)]. Their lordships observed as : 12. What was said by the Constitution Bench in Indra Sawhney v. Union of India, 1992 Supp (3) SCC 217 and Keshav Mills Co. Ltd. v. Commissioner of Income Tax, Bombay North, Ahmedabad, AIR 1965 SC 1636, on the principle of stare decisis clearly bind us. The judgment of this Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of the Delhi High Court in the case of G.D. Builders (supra) has been specifically overruled by this Court in the case of Larsen and Toubro Limited (supra). The decision of the Delhi High Court in the case of G.D. Builders (supra) has been considered by this Court in the case of Larsen and Toubro Limited (supra) in paragraphs 28, 29, 30, 32, 33, 38 and 39 and ultimately, this Court opined that the decision of the Delhi High Court in the case of G.D. Builders (supra) is in fact contrary to a long line of decisions. It is further specifically observed and held that the decision of the Delhi High Court in the case of G.D. Builders (supra) is wholly incorrect in its conclusion that the Finance Act, 1994 contains both the charge and mach ..... X X X X Extracts X X X X X X X X Extracts X X X X
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