2017 (7) TMI 905

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....dia read with Section 66 of the Finance Act 1994 (Prior to 01.07.2012) and Rule 2A(b) of the Service Tax Valuation Rules 2006 both the main contractor and the sub contractor engaged by him are liable to pay service tax on the same service? (C-2) Whether invocation of extended period of limitation under Section 73 of the Finance Act 1994 is justifiable in the facts and circumstances of the case without recording any finding regarding collusion and suppression with an intention to evade payment of duty? 2. We have heard learned counsel for the Appellant/Assessee and the learned counsel for the Respondent-Department. The matter relates to service tax under the Finance Act, 1994. The years of assessment are 2005-2006, 2006-2007 and 2007-200....

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....leviable prior to the introduction on 01.06.2007, of the Finance Act, 2007. Thus, only with effect from 01.06.2007, i.e. the date of effect of the 2007 amendment to the Finance Act 1994 levy of service tax became possible on works contract; which by itself is a separate species of contract distinct from contract of service simplicitor, as recognized by the world of commerce and the law as such, and had always been taxed separately until then. Applying the ratio of that precedent, the proceedings leading to the impugned order insofar as they are for the period till 31.05.2007 have to be taken to be one without the sanction of law. Therefore, such notice and consequential orders have to go. We therefore vacate the impugned decisions and proce....