2017 (1) TMI 1363

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....al Director-General, O/o Director-General of Intelligence, Chennai, dated 29th February 2008 and by Commissioner of Central Excise, Salem on 30th April 2009. The former is for the period from 10th September 2004 to 30th September 2007 demanding service tax of Rs. 1,22,45,679/- along with cess thereon and the adjudication authority has confirmed the demand of Rs. 1,20,49,527/-. In the second matter, the demand was for Rs. 56,17,843/-, with cess thereon, against which the adjudicating authority confirmed an amount of Rs. 49,99,860/- with Cess thereon. 2. The demands in both show-cause notices to rendering of 'commercial or industrial construction service' leviable to tax under section 65(105)(zzq) of Finance Act, 1994 on contracts for ex....

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....liable to tax as provider 01 'commercial or industrial construction service'. This plea was not accepted by the adjudicating authority who proceeded to confirm the demand. Their further contention is that even though they are liable to tax with effect from 1st June 2007 the show-cause notice had not invoked the taxable entry rendering the determination of tax liability to be contrary to the provisions of section 73 of the Finance Act, 1994. It was submitted by the Learned Counsel that further arguments should be contingent upon a decision on these two issues. 5. Learned Authorised Representative was of the opinion that the facts of the appellant are distinguishable the facts relating the judgment delivered by the Hon'ble Supreme Co....

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....vice'. We note the contention of Learned Counsel that the adjudicating authority had perused the contracts on which the demand raised in the show-cause notice and rendered a clear finding, including on the allegation of abatement availed in notification no 15/2004-ST dated 10th September 2004 and notification no 01/2006 dated 1st March 2006; the allowance of abatement is a clear demonstration of ascertainment that supply of goods did form a part of the contract. Therefore, we have no hesitation in accepting the said contracts in dispute to be composite contracts for supply of both goods and services. 8. We note that the findings of the adjudicating authority do accept that supply of goods were involved in the contracts and that he was ....

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....It will also be noticed that no attempt to remove the non-service elements from the composite works contracts has been made by any of the aforesaid Sections by deducting from the gross value of the works contract the value of properly in goods transferred in the execution of a works contract. ' 10. In view of this specific decision and the admitted claim of the appellant that they are not providers of 'commercial or industrial construction service' but of 'works contract service', no tax is liable on construction contracts executed prior to 1st June 2007. 11. Insofar as demand for subsequent period till 30th September 2008 is concerned, it is seen that neither of the two show-cause notices adduce to leviability of tax for rend....