2016 (10) TMI 621

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....is a Central Public Sector Enterprise engaged in providing services relating to construction of various industrial buildings, structures and civil works. Investigation was undertaken by the DGCEI into the construction activities of the appellant since they have not taken registration and was not paying service tax. Revenue took the view that the construction activities undertaken by the appellant will be liable to service tax under the category of Commercial or Industrial Construction Service (CIC). On completion of investigation, the Revenue issued show cause notice dated 26.05.2009 demanding service tax to the tune of about Rs. 4.00 Crores for the period 10.09.2004 to 24.03.2008. The SCN was issued invoking the extended period of limitati....

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....terms of the decision of the Hon'ble Supreme Court in the case of Commissioner of Central Excise, Kerala, vs. L & T Ltd. reported in 2015 (39) S.T.R. 913 (S.C.). In this case, the Hon'ble Supreme Court has held that all composite contracts will need to be classified only under Works Contract Service, introduced w.e.f. 01.06.2007. It has also been decided by the Apex Court that such contracts will not be leviable to service tax for the period prior to 01.06.2007 under any other categories such as Consequently, the entire demand prior to 01.06.2007 cannot survive. ii) This show cause notice has proposed demand of service tax under CIC. Commissioner has also confirmed the demand under this category, even for the period subsequ....

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.... simpliciter recognized by the world of commerce and law as such, and has to be taxed separately as such. 24. A close look at the Finance Act, 1994 would show that the five taxable services referred to in the charging Section 65(105) would refer only to service contracts simpliciter and not to composite works contracts. This is clear from the very language of Section 65(105) which defines "taxable service" as Many service provided" 5. The Apex Court has laid down the law that all composite contracts which involved both supply of goods as well as service can be classified only under works contract service and the service tax liability on such contracts cannot be imposed under other categories i.e. under section 65 (105) (gzzd) (zzh) (z....

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....rgued that even for the period subsequent to 01.06.2007, the Revenue does not have the option of re-assessing service tax under the works contract service. 6. We have very carefully examined the case records and considered the stand of the appellant. We find that we are faced with a peculiar set of facts. In the normal course what the appellant's argument that the services cannot be reassessed contrary to the SCN would have merited acceptance inasmuch as the Apex Court has decided in the case of C.C., Mumbai vs. Toyo Engineering India Ltd. reported in 2006 (201) ELT 513 (S.C.) that the Department cannot travel beyond the show cause notice. We note that the entire assessment of services, Works Contract Services in particular, has unde....