TaxTMI 
TaxTMI 
2021 (12) TMI 429
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....m for the construction services rendered to M/s Balaji Medical and Diagnostic Research Centre, New Delhi. Show Cause Notice dated 02.03.2012 was issued to the appellant proposing to demand the Service Tax for the period 2008-09 to 2010-11 alongwith interest and also for imposing penalty. After due process of law the original authority confirmed the demand, interest and imposed penalties. Aggrieved by such order, the appellants are now before the Tribunal. 2. The learned Counsel Ms. Krati Singh appeared and argued for the appellant. She submitted that the appellant was awarded a contract for construction of a hospital building for Balaji Medical and Diagnostic Research Centre in New Delhi. The Appellant had not discharged the service tax fo....
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....ces for the period after 1.6.2007 on composite contracts cannot sustain. 4. The Learned Authorised Representative Ms. Shivani supported the findings in the impugned order. 5. Heard both sides and perused the records. 6. The main contention put forward by the learned Counsel for the appellant is that the demand made under Commercial or Industrial Construction Services for the period 2008-09 to 2010-11 cannot sustain as the construction services rendered by the appellant are involving both supply of material as well as rendering of service. The said issue whether demand under the category of Commercial or Industrial Construction Services can sustain for construction services on composite contract involving both supply of material and rende....
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....e tax under the category of "works contract" for the period post-JUNE 1, 2007 even if the levy of service tax was not exempted under Notifications, since, the show cause notice that demand it service tax under the three categories namely (i) commercial or industrial construction,(ii) construction of complex, and (iii) management, maintenance or repair. 23. The order dated January 31, 2018 passed by the Commissioner that has confirmed the demand of service tax, therefore, deserves to be set aside and is set aside. The appeal is, accordingly, allowed. 7. In the case of Real Value Promoters vs. CGST, 2018-TIOL-2867-CESTAT-MAD similar issue was analysed wherein the Tribunal held that after 01.06.2007 for services rendered in the nature of co....
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....on the impugned services involving composite works contract, under 'Commercial or Industrial Construction Service' or 'Construction of Complex' Service, cannot therefore sustain. In respect of any contract which is a composite contract, service tax cannot be demanded under CICS / CCS for the periods also after 1.6.2007 for the periods in dispute in these appeals. For this very reason, the proceedings in all these appeals cannot sustain. [Emphasis supplied] 8. The above decisions hold that the demand of service tax under Commercial or Industrial Construction Services cannot sustain for contracts which are composite in nature and involve both supply of material and rendering of service. Accordingly, we hold that the demand cannot sustain on....