Tribunal rules in favor of appellant, finding no service tax liability for pre-2007 construction services The tribunal set aside the impugned order demanding service tax for commercial or Industrial Construction Service, allowing the appellant's appeal. The ...
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Tribunal rules in favor of appellant, finding no service tax liability for pre-2007 construction services
The tribunal set aside the impugned order demanding service tax for commercial or Industrial Construction Service, allowing the appellant's appeal. The tribunal determined that the activity was not taxable before 01-06-2007, based on the indivisibility of the contract and a Supreme Court decision on composite works contracts not attracting service tax.
Issues: Appeal against service tax demand for commercial or Industrial Construction Service.
Analysis: The appellant appealed against an order demanding service tax for engaging in commercial or Industrial Construction Service. An internal audit revealed the alleged engagement in such services during a specific period, leading to a show cause notice for tax payment, interest, and penalty. The appellant contended that their work fell under 'work contract service' since 01-06-2007, citing a case precedent. The respondent supported the impugned order. The tribunal examined the contract's indivisibility and referred to a Supreme Court decision stating that composite works contracts do not attract service tax. Consequently, the tribunal held that before 01-06-2007, the activity was not taxable. The impugned order was set aside, and the appeal was allowed.
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