2018 (12) TMI 1117

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....arned Additional Advocate General appearing for the petitioner has questioned the assumption of jurisdiction to issue the impugned show-cause-cum-demand notice. He has submitted that, the impugned show-cause-cum-demand notice is without jurisdiction in as much as, Service Tax is not payable in respect of a composite contract. According to him, a composite works contract is not exigible to Service Tax when, such contract cannot be dissected into a compartment which allows imposition of Service Tax on a quantum of the contract. He has drawn the attention of the Court to the fact that the subject contracts were entered into before June 1, 2007. He has relied upon 2016 Volume 1 Supreme Court Cases page 170 (Commissioner, Central Excise and Cust....

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....ent Authority & Anr. v. Ruchira Ceramics & Anr.), 2016 Volume 340 Excise Law Times page 133 (Sova Solar Ltd. v. Commissioner of Customs, Central Excise & Service Tax, Durgapur), 2014 Volume 1 Supreme Court Cases page 603 (Commissioner of Income Tax & Ors. v. Chhabil Dass Agarwal). He has drawn the attention of the Court to the reply given by the petitioners to the impugned show-cause-cum-demand notice. According to him, since an order in original has been passed, no interference is called for by the Writ Court. The first petitioner has claimed itself to be engaged in the business of construction of roads, bridges, flyovers, transport terminals, power contracts and other infrastructures. The first petitioner has claimed itself to be an as....

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.... tax. The tax law must identify the subject of the tax, the person who is liable to pay tax and the rate at which the tax is to be paid. If there is any ambiguity regarding any of those three ingredients in a taxation statute, then there is no tax in law. Larsen & Toubro Ltd. (supra) has considered the applicability of Service Tax as obtaining prior to the amendment to the Service Tax Act, 1994 in 2007 in respect of a works contract. It has held that, infrastructure projects such as works contract in respect of roads, airports, airways, transport, bridges, tunnels and tanks have been excluded prior to the introduction of the amendment in 2007 in view of the ratio laid down in Larsen & Toubro Ltd. (supra). In the facts of the present c....