2019 (3) TMI 955

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f Balance Sheet and Profit & Loss Account, it appeared that appellants had provided CICS from 2005-6 to 2009-10. It appeared that the appellants have not included the entire amount received towards discharging service tax under CICS. They had received certain free supplies, which has not been included in the taxable value. Show-cause notice was issued proposing to demand the service tax along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalties. Aggrieved, the appellants are now before the Tribunal. 2. The learned counsel Shri Joseph Prabhakar appeared and argued the matter on behalf of the appellants. He submitted that the demand in the show-....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... Therefore, the contracts are composite in nature. He also furnished the VAT assessment orders for the relevant period and submitted that these assessment orders would demonstrate that the appellants had purchased and transferred materials to the customers while rendering the activity of Works Contract Services. Even in the reply to the show-cause notice, the appellants have put forward these contentions. Further, it is argued by him that though the department alleges that the appellants did not obtain registration and did not pay service tax, it is factually incorrect. The invocation of extended period also cannot sustain. The demand is for the period from 2005-06 to 2009-10. For the demand prior to the period 01.06.2007, the Hon'ble Apex....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at when the appellants have taken substantial portion of the consideration in the work order, in the nature of free supplies, they cannot be put in the category of composite contracts. 5. Heard both sides. 6. The demand of service tax is raised under the category of CICS. In the reply to the show-cause notice, the appellants have given detailed submissions with regard to procurement of materials like bricks, blue metals, sand, stones and electrical. A cursory glance of Profit & Loss Account also reveals that they have purchased and sold/transferred these materials in the course of execution of Works Contract. The VAT assessment orders would also show that the appellants have been assessed for payment of VAT on such materials procured ....