TaxTMI 
TaxTMI 
2017 (11) TMI 1334
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....e engaged in construction business. They were providing taxable service in pursuance of various contracts entered into with the client. After conducting certain verification of the records of the assessee/ appellant, the Revenue entertained a view that the assessee/ appellant did not discharge due service tax on various contracts executed by them. On completion of verification and enquiry, proceedings were initiated against the assessee/appellant by issuing show cause notice dated 13/04/2010. The notice proposed demand and recovery of service tax for the services rendered during the period 01/10/2004 to 30/09/2009. The notice listed various contracts alongwith tax liability in respect of each one of them. The case was adjudicated resulting ....
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....ee/appellant is liable to pay service tax only w.e.f. 01/06/2007 availing composition scheme as they have fulfilled the conditions of composition scheme ; (e) the demands issued invoking extended period are not sustainable. In fact some of the contracts were entered into even prior to the introduction of tax liability on erection, commissioning or installation service. The dispute regarding tax liability of composite works contract was resolved only by the decision of Hon'ble Supreme Court in Larsen & Toubro Ltd. (supra). Considering the interpretation issue and the dispute persisting during the relevant period there is no ground for invoking extended period of demand. On the same ground penalties also are not sustainable. 3. Th....
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....pellant is that wherever there is a clear evidence to state that the contracts are all composite nature clearly falling under works contract service there can be no tax liability on the assessee/appellant on these contracts for the period prior to 01/06/2007. We are in agreement with the said proposition. However, as contended by the learned AR the basic documents of each contracts, more specifically supporting evidence of supply of materials suffering sales tax is necessary for verification of the claim of the appellant. It is clear that in case of composite works contract, the appellant/assessee shall not be liable to service tax for the period prior to 01/06/2007. This has been clearly held by the Hon'ble Supreme Court in Larsen & Toubro....
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....act service, post 01/06/2007. 7. The appellant/assessee also contested the demand on limitation. We note that essentially they have been executing contracts involving material as well as service. It is an admitted fact that there were persistent disputes regarding the tax liability and even quantification of such liability in respect of such contracts. The matter got resolved only by the decision of Hon'ble Supreme Court in Larsen & Toubro Ltd. (supra). Considering such issue of interpretation and disputes persistent during the time it is not sustainable for the Revenue to invoke extended period in respect of such services. Accordingly, the demand wherever liable to be paid shall be restricted to the normal period of limitation as per Se....