TaxTMI 
TaxTMI 
2018 (2) TMI 1113
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....on-profitable organisation. Another project undertaken by the appellant was construction of residential quarters for Central Government and Defence Department and Theni Medical College. The appellants did not pay the service tax on these activities of construction and the department was of the view that such services fall under the category of Commercial or Industrial Construction Services and therefore subject to levy of service tax with effect from 9/2004. Short payment of service tax pertaining to GTA services was also noticed. A Show Cause Notice dt.5.3.2008 was issued proposing to demand service tax alongwith interest for the period 10.9.2004 to 30.9.2007. After due process of law, the Original Authority confirmed the demand alongwith ....
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.... of works contract services with effect from 1.6.2007 and these services are actually works contract services. That therefore the demand of service tax made after 1.6.2007 is also not sustainable. For this argument, he relied upon the decision of Tribunal in the case of M/s.URC Construction (P) Ltd Final Order No.42037 - 42038 / 2016 dt.14.7.2016. That after 1.6.2007 the appellant is registered under works contract services which is accepted by department and therefore demand of service tax under the heads Commercial or Industrial Construction Services and construction of complex services is not sustainable. 3. The Ld.AR, Sh. K.Veerabhadra Reddy opposed the appeal. He submitted that the contracts are not composite contracts and therefore t....
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....Court in the case of Larsen & Toubro Ltd (supra) has held that works contract services are not subject to levy of service tax prior to 1.6.2007. The appellant contends the activities to fall under works contract services, whereas, Revenue alleges these activities to fall under Commercial or Industrial Construction Services. According to appellants, the contract executed by them are composite contracts in which the labour element and the goods element cannot be bifurcated. Admittedly appellants are registered under the category of works contract services from 1.6.2007 and are discharging the service tax under this category. The details of the amount confirmed (Rs.2,29,73,311/-) in the impugned order is shown in the table below. TOTAL SERVIC....
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....to the demand raised prior to 1.6.2007 and requires to be set aside, which we hereby do. 7. The period involved is upto 30.9.2007. In the Show Cause Notice it is stated that the demand is based on receipt of service charges received till August 2007 in regard to Chennai City Centre Project; similarly in the case of construction of residential complex the demand is based on receipt of charges till September 2007. If the construction activities have been completed prior to 1.6.2007 and charges/consideration is received after 1.6.2007, the said amount received after 1.6.2007 would not be subject to levy of service tax as held by the Tribunal in the case of M/s.G.K.Shetty Buildings Pvt. Ltd. vs Commissioner of Service Tax, Chennai vide Final O....