Service tax demand on construction services set aside for Private Limited Company, classified as Works Contract Service

The Tribunal set aside the demand for service tax under "Commercial or Industrial Construction Services" against a Private Limited Company, finding the services correctly classified as "Works Contract Service" taxable from 01.06.2007. The decision was based on the activity being a service along with material supply, aligning with the classification in Larsen & Tourbro Limited case. The appeal was allowed, providing consequential relief to the appellant.

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Issues involved: Appeal against demand of service tax under "Commercial or Industrial Construction Services".

Summary:

Issue 1: Classification of services
The appellant, a Private Limited Company, was investigated for undertaking civil construction works for various clients. The Revenue alleged that the services provided fell under "Commercial and Industrial Construction Services" and issued a show-cause notice for demanding service tax for the period from 2004-05 to 2007-08. However, after examining the documents submitted by the appellant, it was found that the services provided were correctly classified as "Works Contract Service" taxable from 01.06.2007, as per the decision of the Hon'ble Apex Court in the case of Larsen & Tourbro Limited. The Tribunal concluded that the activity undertaken by the appellant was a service along with the supply of material, falling under the category of "Works Contract Service".

Decision:
The Tribunal set aside the impugned demand confirmed against the appellant, as the services provided were correctly classified as "Works Contract Service" and not under "Commercial and Industrial Construction Services". The appeal was allowed with consequential relief, if any.

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