AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2017 (12) TMI 172
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....itsar MC Building, Amritsar (e) M/s. Ansal Construction of Roads (f) M/s. M.C. Kharar Govt. Model Sr. Sec. School (g) M/s. Jalandhar Improvement Trust Construction of flats (h) M/s. Midland Construction of flats (i) M/s. OTM Accn., Ferozpur OTM Accommodation (j) M/s. Mussorie Dehradun Development Authority Construction of flats. (k) Airport Authority of India (l) Railways over/under bridges (m) Hospital of Gulab Devi Trust (n) Thapar Institute of Technology (o) Punjabi University, Patiala (p) C.T. Education Society, Jalandhar During the impugned period, the appellant received a sum of Rs. 9,14,01,136/- from State Bank of India and M/s. Sharma Vikram Motors for construction of buildings and from different improvement Trusts for the construction of residential units. The appellant entered into a composite contract for supply of raw material as well as providing construction services. On the basis of scrutiny of documents, it was alleged that the construction of building for SBI and Shrama Vikram Motors falls under category of Commercial or Industrial Construction Services under Section 65 (25b) of the Finance Act, 1994 and construction of Residential Complex....
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....d that service tax is not payable with respect to construction of residential units for Government department/local Bodies/ Development authorities. The improvement trusts, Jalandhar, Sangrur, Bhathinda, Roop Nagar and Dehradun in their reply in their reply to RTI application have confirmed that they have not paid service tax for Residential Complex services as they are statutory autonomous bodies. It is, therefore, the contention of the appellant is that they are not liable to pay service tax and extended period is not applicable as it stands certified by different authorities. He submits that as there is no suppression of facts and the appellant has proved that there was no reason to believe that service tax is payable, the extended period is not invokable. He further submitted that the Revenue has classified the construction activities undertaken for SBI and Sharma Vikram Motors under Commercial or Industrial Construction Services and construction of residential units under "Residential Complex services". The Revenue declined to classify the services under Works Contract services on the ground that no evidence has been produced to show that the appellant has worked under works c....
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....uction Commercial or Industrial Construction Services and construction of "Residential Complex services". He also relied on the decision of Ahluwalia Contracts (India) Limited Vs. CST, New Delhi - 2015 (38) STR 38 (Tri. Del.). 5. Heard both sides and considered the submissions. We find that the facts of the case are not in dispute that the appellant has provided construction services along with material. Now the issue before us is whether the construction services provided along with material, falls under the Works Contract service or construction of Commercial or Industrial Construction Services / "Residential Complex services". The said issue has been dealt by the Hon'ble Apex Court in the case of Larson & Toubro Limited (supra) wherein the Hon'ble Apex Court has examined the issue and observed as under:- "It is interesting to note that while introducing the concept of Service Tax on indivisible works contracts various exclusions are also made such as works contracts in respect of roads, airports, airways transport, bridges, tunnels, and dams. These infrastructure projects have been excluded and continue to be excluded presumably because they are conceived in the national inte....
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....works contract as a whole from which various deductions have to be made to arrive at the service element in the said contract. We find therefore that this judgment is wholly incorrect in its conclusion that the Finance Act, 1994 contains both the charge and machinery for levy and assessment of service tax on indivisible works contracts." We further find that, by Finance Act, 2007, for the first time Section 65 (105) (zzzza) was set-out to the following:- "(zzzza) to any person, by any other person in relation to the execution of a works contract, excluding works contract in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams. Explanation : For the purposes of this sub-clause, works contract means a contract wherein, - (i) Transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods, and (ii) Such contract is for the purposes of carrying out, - (a) Erection, commissioning or installation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise, installation of electrical and electronic devices, plumbing, drain laying or other installations for transport of fluids, hea....
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....nd following the decisions of this Court, we would have ordinarily permitted the Revenue to issue a fresh show cause notice to the assessee seeking to classify the goods under Chapter Heading 8448.00. However, due to the passage of time, we are of the opinion that it would not be advisable (or permissible under the provisions of the Central Excise Tariff Act) to permit the Revenue to reopen the entire proceedings and classify the goods under Chapter Heading 8448.00. 13. Accordingly, while setting aside the impugned order passed by the Tribunal, we remand the matter to the Tribunal to take a decision on whether the goods manufactured by the assessee are classifiable under Chapter Heading 4009.99 as claimed by the assessee or 4016.99 as claimed by the Revenue. The order of remand is limited only to this issue." 6. We further find that the show cause notice has been issued by invoking extended period of limitation on the ground that, as the appellant has sought information through RTI applications whether their activity is liable to be taxed or not and the same has been replied by the different Commissionerates as well as service recipients that their activity is not liable to be t....