2018 (1) TMI 1620 - AT - Service Tax

Service Tax Dispute on Construction Services Remanded for Reconsideration Following Supreme Court Guidelines.

The Tribunal set aside the Order-in-Original concerning Service Tax on construction services from 01.04.2004 to 31.03.2008 and remanded the case to the ... Levy of Service Tax - works contract - construction of furnaces, plants, cast house etc. - HELD THAT:- Hon’ble Supreme Court in the case of Commissioner of Central Excise, Kerala vs Larsen & Toubro Ltd., [2015 (8) TMI 749 - SUPREME COURT], has held that prior to June, 2007 the ‘Works Contract Services’ were not subjected to Service Tax. The matter is remanded to the original authority to decide the issue de novo in the light of the law laid down by the Hon’ble Supreme Court in the case of Larsen & Toubro Ltd. - appeal allowed by way of remand. Issues involved: Appeal against Order-in-Original regarding Service Tax on construction services from 01.04.2004 to 31.03.2008.Analysis:1. Background of the Case: The appeal was filed against the Order-in-Original passed by the Commissioner of Customs, Central Excise & Service Tax, Raipur, concerning the demand for Service Tax on construction services provided by the assessee-Appellants during the period from 01.04.2004 to 31.03.2008.2. Contentions of the Parties: The assessee-Appellants argued that prior to June 2007, 'Works Contract Services' were not subject to Service Tax, citing the decision of the Hon'ble Supreme Court in the case of Commissioner of Central Excise, Kerala vs Larsen & Toubro Ltd. The services of erection, commissioning, and installation were claimed to have come into existence from 10.09.2004. The original authority was criticized for not applying the law laid down by the Supreme Court in the Larsen & Toubro Ltd. case. On the other hand, the Revenue supported the impugned order.3. Judgment: After considering the arguments and the legal position, the Tribunal set aside the impugned order and remanded the matter to the original authority. The original authority was directed to reconsider the issue in light of the law established by the Supreme Court in the Larsen & Toubro Ltd. case. The assessee-Appellants were granted a reasonable opportunity to present their case and submit additional evidence, if any, as per the law. Consequently, the appeal filed by the assessee-Appellants was allowed by way of remand.4. Conclusion: The Tribunal's decision to remand the matter for fresh consideration in accordance with the legal precedent set by the Supreme Court showcases the importance of applying established legal principles in tax matters. The judgment emphasizes the need for authorities to provide a fair opportunity for parties to present their case and submit evidence for a just and informed decision-making process in tax disputes.