2018 (3) TMI 2059 - AT - Service Tax

Appeal allowed; demand based on commercial or industrial construction services set aside as unsustainable, liability only under works contract.

CESTAT Chandigarh (AT) allowed the appeal, holding the demand based on Commercial or Industrial Construction Services unsustainable. The tribunal noted a ... Classification of services - Commercial or Industrial Construction Services or construction services? - HELD THAT:- It is seen that the appellant is engaged in the construction activities and service tax liability has been confirmed against them under the category of Commercial or Industrial Construction Services. For the very same dispute, for the earlier period, it is noted that the Tribunal vide Final Order No. A/62071-62072/2017 dated 01.12.2017 [2017 (12) TMI 172 - CESTAT CHANDIGARH] held that the tax liability if any, shall arise only under the category of Works Contract services. Since there was no allegation for such tax liability in the proceedings before the lower authorities, the demand was set-aside. The present demand proceedings are not sustainable. Accordingly, the same is set-aside. Appeal is allowed. Application for early hearing was allowed and the appeal was taken up for final disposal with consent. The appellant, engaged in construction activities, faced confirmed service tax demand classified as 'Commercial or Industrial Construction Services.' The Tribunal relied on its earlier decision in the appellant's own case (Final Order No. A/62071-62072/2017 dated 01.12.2017) holding that 'the tax liability if any, shall arise only under the category of Works Contract services.' Since no allegation of Works Contract service tax liability was made before the lower authorities, the present demand proceedings were held 'not sustainable' and the demand was set aside. Appeal allowed; miscellaneous application disposed of.