TaxTMI 
TaxTMI 
2019 (11) TMI 678
X X X X Extracts X X X X
X X X X Extracts X X X X
....s amount charged under Notification No. 15/2004-ST dated 10.09.2004 and Notification No. 01/2006-ST dated 01.03.2006 and was paying service tax on 33% of the gross amount received and an audit was conducted at the appellant's premises and it was observed that the appellant is not paying service tax on Construction Services of complexes developed by Nagar Panchayat, Building of private college and boundary wall of the different parties. It was also observed that the appellant did not pay service tax on TDS deducted from the payments released by various parties, amount adjusted on account of electricity charges, water expenses and ESI expenses, retention money and mobilisation advance for the period 10.09.2004 to February 2006. Further, on th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n nature of 'Works Contract Service' wherein the said service includes the transfer of property in goods as well as rendering of services and works contract services was taxable w.e.f. 01.06.2007. Therefore, for the period prior to 01.06.2007, they are not required to pay service tax at all as held by the Hon'ble Apex Court in the case of CCE & C vs. Larsen & Toubro Ltd. - 2015 (39) STR 913(S.C). Further, from 01.06.2007 if services are provided alongwith material, the same have merit classification under 'Works Contract Service' and no demand has been raised against the appellant under 'Works Contract Service'. Therefore, they are not liable to pay service tax as held by this Tribunal in the case of Srishti Constructions vs. CCE & ST- Ludh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ther the activities of construction of complex developed by Nagar Panchayat, building of private college and boundary wall of different parties undertaken by the appellant and are liable to be taxed under Construction Services or Works Contract Services as same has been provided alongwith material. (b) Whether free supplies of material is required to be included in the assessable value of services provided by the appellant or not? (c) Whether the appellant is entitled for the benefit of Notification No. 01/2006-ST dated 01.03.2006 when they have reversed the cenvat credit availed on input services alongwith interest before issuance of the show cause notice or not? Issue No. 1. We find that the issue has already been settled by the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....erent parties, the appellant is not liable to pay service tax under construction service but merit classification is "Work Contract Service". Issue No. 2. We find that the said issue has been settled by the Hon'ble Apex Court in the case of Bhayana Builders (P) Ltd. (supra) wherein the Hon'ble Apex Court has observed as under:- "15.It was argued that payment received in 'any form' and 'any amount credited or debited, as the case may be...' is to be included for the purposes of arriving at gross amount charges and is leviable to pay service tax. On that basis, it was sought to argue that the value of goods/materials supplied free is a form of payment and, therefore, should be added. We fail to understand the logic behind the aforesaid ....